The defects of any form of government may be either negative or positive. It is negatively defective if it does not concentrate in the hands of the authorities power sufficient to fulfil the necessary offices of a government; or if it does not sufficiently develop by exercise the active capacities and social feelings of the individual citizens. On neither of these points is it necessary that much should be said at this stage of our inquiry.

Abstract:The purpose of this paper is to suggest that at least one strain of what has come to be called “stakeholder theory” has roots that are deeply libertarian. We begin by explicating both “stakeholder theory” and “libertarian arguments.” We show how there are libertarian arguments for both instrumental and normative stakeholder theory, and we construct a version of capitalism, called “stakeholder capitalism,” that builds on these libertarian ideas. We argue throughout that strong notions of “freedom” and “voluntary action” are the (...) best possible underpinnings for stakeholder theory, and in doing so, seek to return “stakeholder theory” to its managerial and libertarian roots found in Freeman (1984). (shrink)

Abstract:As we transition to the 21st century, it is useful to think about some of the most important challenges business and other organizations will face as the new millennium begins. What will constitute “business as usual” in the business ethics arena as we start and move into the new century? My overall thought is that we will pulsate into the future on our current trajectory and that the new century will not cause cataclysmic changes, at least not immediately. Rather, the (...) problems and challenges we face now we will face then. Undoubtedly, new issues will arise but they will more likely be extensions of the present than discontinuities with the past. (shrink)

This presidential address to the Society for Business Ethics argues that business ethics rests upon the mistaken assumption thatteaching and research in the field ought to aim at the incorporation of ethics into managerial decision making. An alternative to this Moral Manager Model is a Moral Market Model, in which the aim is to develop markets that produce ethical outcomes. The differencesbetween the two models are discussed with reference to the themes of responsibility, participation, and relationships.

The relationship between ethics and economics has never been easy. Opponents in a tug of war, friends in a warm embrace, ships passing in the night—the relationship has been highly variable. In recent years, the friendship model has been gaining credence, particularly among U.S. corporate executives. Increasingly, companies are launching ethics programs, values initiatives, and community involvement activities premised on management’s belief that “Ethics pays.”.

This paper examines two issues about professionalism and business that appear at first blush to be entirely separate. The first is the question of who counts as a “professional,” and whether, in particular, business people are “professionals.” The second issue is howacknowledged professionals that regularly interact with business, such as accountants, lawyers, and physicians, can find the moral free space necessary to maintain professional integrity in the face of financial pressures. Conflicts of interest for professionals working incorporations recur with disturbing (...) regularity, and often have serious consequences. In the end I will show how both issues share a common solution. The solution involves understanding the normative function of the manager in the modern corporation, a function, I will argue, made more conspicuous by work over the last two decades done in the areas of stakeholder theory, corporate social performance (CSP), and social contract theory. The remainder of the paper is devoted to articulating these two problems and clarifying their common solution. (shrink)

Business ethics serves the important social function of integrating business and society, by promoting the legitimacy ofbusiness operations, through critical reflection. Although the social function of business ethics is impliCit in leading business ethicsfoundation theories, it has never been presented in a systematic way. This article sets out to fill this theoretical lacuna, and to explore the theoretical potentials of a functional approach to business ethics. Key concepts from Parsonian functionalistic SOCiology are applied to establish the social integrative function of (...) business ethics. This produces a theoretical framework for business ethics that provides strong theoretical arguments against often-heard criticisms of business ethics. Many of these criticisms are ideological in nature, in that they systematically play down the importance of integrative functions in the bUSiness-society relationship, on the grounds of unrealistic assumptions about the performance of economic and bureaucratic institutions. However, business ethics itself can alsobecome ideological, if it forgets that the conditions for the application of ethics to business are not always ideal as well. (shrink)

In this paper I try to enlarge the scope of the questions commonly treated in business ethics. I first argue that not motives but action structures should form the basis of our analytical endeavours. I then distinguish three basic structures in human action: self-directed, other-including and other-directed actions. These structures, when linked with the concepts of interests and legitimate claims or rights, lead to a taxonomy of moral behaviour in business that I describe as, respectively, transactional, recognitional and participatory ethics, (...) three distinct realms of moral behaviour, each characterized by a specific set of moral principles and a special relation between moral agents. My contention is that, up to now, analysis in business ethics has largely been focused on issues in the field of recognitional ethics. The discipline itself as well as ethical practices in business may greatly profit by paying explicit attention to market morality and transactional ethics as well as to the non-enforceable we-alliances of a participatory ethics, increasingly possible and needed in present-day civil society. (shrink)

I feel deeply honored and privileged to have the opportunity of giving the first Baffi Lecture at the Bank of Italy. Paolo Baffi was not only a distinguished banker and financial expert, he was also a remarkable economist and a visionary social thinker. He had outstanding technical expertise in many different fields, but combined his intellectual eminence with a profound sense of values. As Governor Ciampi put it at the general meeting of the Bank of Italy last May, Paolo Baffi (...) represented “an extraordinary combination of penetrating logic, erudition and moral strength … [he was] not only a gifted student of economics, he had a deep-seated commitment to act for the common good.”1 In remembering Baffi today, we must keep in mind both his intellectual contributions and his general evaluative concerns. (shrink)