Dozens of countries have established Sovereign Wealth Funds (SWFs) in the last decade or so, in the majority of cases employing those funds to manage the large revenues gained from selling resources such as oil and gas on a tide of rapidly rising commodity prices. These funds have raised a series of ethical questions, including just how the money contained in such funds should eventually be spent. This article engages with that question, and specifically seeks to connect debates on SWFs (...) with debates onglobaljustice. Just how good are national claims to the great wealth contained in SWFs in the first place? Using the example of Norway's very large SWF – derived from selling North-Sea petroleum – I show that national claims are at least sometimes very weak, with the implication that the wealth in many such funds is ripe for redistribution in the interests of global justice. I conclude by offering some guidance for how the money contained in such funds could best be spent, with the goal of advancing global justice. (shrink)

Since it appeared in 1971, John Rawls's A Theory of Justice has become a classic. The author has now revised the original edition to clear up a number of difficulties he and others have found in the original book. Rawls aims to express an essential part of the common core of the democratic tradition--justice as fairness--and to provide an alternative to utilitarianism, which had dominated the Anglo-Saxon tradition of political thought since the nineteenth century. Rawls substitutes the ideal of the (...) social contract as a more satisfactory account of the basic rights and liberties of citizens as free and equal persons. "Each person," writes Rawls, "possesses an inviolability founded on justice that even the welfare of society as a whole cannot override." Advancing the ideas of Rousseau, Kant, Emerson, and Lincoln, Rawls's theory is as powerful today as it was when first published. (shrink)

Though the revised edition of A Theory of Justice, published in 1999, is the definitive statement of Rawls's view, so much of the extensive literature on Rawls's theory refers to the first edition. This reissue makes the first edition once again available for scholars and serious students of Rawls's work.

A liberal society seeks not to impose a single way of life, but to leave its citizens as free as possible to choose their own values and ends. It therefore must govern by principles of justice that do not presuppose any particular vision of the good life. But can any such principles be found? And if not, what are the consequences for justice as a moral and political ideal? These are the questions Michael Sandel takes up in this penetrating critique (...) of contemporary liberalism. Sandel locates modern liberalism in the tradition of Kant, and focuses on its most influential recent expression in the work of John Rawls. In the most important challenge yet to Rawls' theory of justice, Sandel traces the limits of liberalism to the conception of the person that underlies it, and argues for a deeper understanding of community than liberalism allows. (shrink)

A critical issue for the future growth of socially responsible investment (SRI) is to what extent institutional investors such as pension funds can be persuaded to engage in it. This paper considers attempts at justifying such engagement stemming from a range of (re-)interpretations of the fiduciary duties owed by pension funds to their beneficiaries, and thereby develops a hypothesis concerning the most effective political or legal remedy. Previous commentary suggests that fiduciary duty either already mandates SRI for pension funds, or (...) at least can be made to do so rather easily. In contrast with this, however, this paper finds that none of the considered interpretations is able to justify engagement on social and environmental issues across the board. Indeed, the problem to some extent seems rooted in the very concept of fiduciary duty. The paper is relevant to current attempts at justifying SRI through reinterpretations of fiduciary duty, provided mainly by legal scholars and practitioners. By addressing the more philosophical issue of how far the concept of fiduciary duty can be “stretched” to accommodate SRI (a project of conceptual rather than legal clarification), it provides an evaluation of the contemporary debate which is independent of squabbles about existing law. The paper shows that there are conceptual limits to attempts at redefining fiduciary duty. But this does not mean that pension funds' engagement in SRI is unjustified or unjustifiable more generally. A more promising way to legally mandate SRI may be through what is dubbed independent social and environmental obligations. (shrink)

And in this book the distinguished scholar Amartya Sen offers a powerful critique of the theory of social justice that, in its grip on social and political ...

A liberal society seeks not to impose a single way of life, but to leave its citizens as free as possible to choose their own values and ends. It therefore must govern by principles of justice that do not presuppose any particular vision of the good life. But can any such principles be found? And if not, what are the consequences for justice as a moral and political ideal? These are the questions Michael Sandel takes up in this penetrating critique (...) of contemporary liberalism. Sandel locates modern liberalism in the tradition of Kant, and focuses on its most influential recent expression in the work of John Rawls. In the most important challenge yet to Rawls' theory of justice, Sandel traces the limits of liberalism to the conception of the person that underlies it, and argues for a deeper understanding of community than liberalism allows. (shrink)

1. The idea of a reason should be taken as the central notion for understanding desire, motivation, value, and morality. The argument of the book takes the idea of a reason as primitive. Nothing I go on to claim depends on the thesis that this notion cannot be explained in other terms, but I do not see how this could be done. It is often held that in all, or at least most, cases in which a person has a reason (...) for some action this is so because acting in this way would promote the satisfaction of some desire that the agent has. I argue that this is almost never the case. I argue that while the reasons a person has may depend on subjective factors, desires almost never provide reasons for action in the way that the desire-satisfaction model suggests. Desires are best understood not as states that provide reasons but rather as states that involve seeing other considerations as a reasons. (shrink)

Regulation must target the financial sector, which often funds and profits from environmentally unsustainable development. In an era of global financial markets, the financial sector has a crucial impact on the state of the environment. The long-standing movement for ethically and socially responsible investment (SRI) has recently begun to advocate environmental standards for financiers. While this movement is gaining more adherents, it has increasingly justified responsible financing as a path to be prosperous, rather than virtuous. This trend partly owes to (...) how financial institutions view their legal responsibilities. The business case motivations that now predominantly drive SRI are not sufficient to make the financial sector a means to sustainable development. Some modest legal reforms to improve the quality and extent of SRI have yet to make a tangible difference. A more ambitious strategy to promote SRI for environmental sustainability is possible, based on reforming the fiduciary duties of financial institutions. Such duties, tied to concrete performance standards, could make financiers invest in more ethically responsible ways. Other collateral reforms to financial markets, including improved corporate environmental reporting, are required to promote sustainability. (shrink)

One‐third of all human deaths are due to poverty‐related causes, to malnutrition and to diseases that can be prevented or cured cheaply. Yet our politicians, academics, and mass media show little concern for how such poverty might be reduced. They are more interested in possible military interventions to stop human rights violations in developing countries, even though such interventions – at best – produce smaller benefits at greater cost. This Western priority may be rooted in self‐interest. But it engenders, and (...) is sustained by, a deeply flawed moral presentation of global economic cooperation. The new global economic order we impose aggravates global inequality and reproduces severe poverty on a massive scale. On any plausible understanding of our moral values, the prevention of such poverty is our foremost responsibility. (shrink)

A classic collection of Bertrand Russell’s more controversial works, reaffirming his staunch liberal values, _Unpopular Essays_ is one of Russell’s most characteristic and self-revealing books. Written to "combat… the growth in Dogmatism", on first publication in 1950 it met with critical acclaim and a wide readership and has since become one of his most accessible and popular books.

"--Daniel Weinstock, University of Montreal "This short book presents a broad synthesis of Jon Elster's work on reason and rationality, and their complex relations to interest and passion.

Rationality and reasonableness are often sharply distinguished from one another and are even held to be in conflict. On this construal, rationality consists in means-end calculation of the most efficient means to one's ends (which are usually taken to be self-interested), while reasonableness consists in equitableness whereby one respects the rights of other persons as well as oneself. To deal with this conflict, it is noted that both rationality and reasonableness are based on reason, which is analyzed as the power (...) of attaining truth, and especially necessary truth. It is then shown that, by the rationality involved in reason, the moral principle of reasonableness, the Principle of Generic Consistency (PGC), has a stringently rational justification in that to deny or violate it is to incur self-contradiction. Objections are considered bearing on relevance and motivation. It is concluded that, where reasonableness and egoistic rationality conflict, the former is rationally superior. (shrink)

This paper argues that since the last decades of the twentieth century the discipline of modern finance has directed fiduciaries to act "rationally"—that is, in the sole financial interest of their funds--downplaying the effects of their investments on others. This approach has deemphasized a previous, more "reasonable" interpretation of fiduciary duty that drew on a conception of prudence characterized by wisdom, discretion and intelligence—one that accounts to a greater degree for the relationship between one's investments and their effects on others (...) in the world. The reasonable approach allows fiduciaries to a greater degree to assess the objective well-being of beneficiaries, to recognize fundamental sources of investment reward in the economy, and to fulfill their obligations to allocate benefits impartially between current and future generations. Reason and rationality can work in a complementary fashion to make investment long-term in its perspective and beneficial to society and the economy as well as to specific funds or portfolios. Determining how to accomplish this challenging task is part of the obligation of fiduciaries as they seek to realize the full potential of the investment assets entrusted to their care. (shrink)

In this article I will describe the main elements of the Norwegian press’s moral confrontation with the Government Pension Fund’s ethical investment management when it was in an introductory phase in early 2005, with special emphasis on one newspaper, Stavanger Aftenblad. The press criticized the fund’s fresh investment profile and intended exclusionary practice before it had really started in earnest. Then I will focus on how the press’s unilateral criticism of the fund’s investment practice at the time overshadowed a discussion (...) of any defects in the ethical principles for investment. And I will focus on the press’s lack of distinguishing between information and sensation. In conclusion I point out that in 2006 the press has abandoned its critical stance from 2005 and has now a tendency to idealize the fund’s exclusionary practice and the underlying principles. (shrink)

Rationality and reasonableness are often sharply distinguished from one another and are even held to be in conflict. On this construal, rationality consists in means-end calculation of the most efficient means to one's ends, while reasonableness consists in equitableness whereby one respects the rights of other persons as well as oneself. To deal with this conflict, it is noted that both rationality and reasonableness are based on reason, which is analyzed as the power of attaining truth, and especially necessary truth. (...) It is then shown that, by the rationality involved in reason, the moral principle of reasonableness, the Principle of Generic Consistency, has a stringently rational justification in that to deny or violate it is to incur self-contradiction. Objections are considered bearing on relevance and motivation. It is concluded that, where reasonableness and egoistic rationality conflict, the former is rationally superior. (shrink)

Investment products that deploy ethical values and social considerations in portfolio construction have persisted since the 1980s. Pitting Habermasian discourse ethics against Foucauldian power relations and radical institutionalism, the paper argues that socially directed mutual funds ascribe capital markets with validities of high moral magnitude, work up extant tendencies toward financial hegemony and stymie criticism of the political-economic order. Institutional pressures do not permit the exercise of an ethic stronger than an aesthetic care of the self. The balance struck between (...) economic and social priorities is investigated by interviewing investment managers, reviewing archival material and surveying the attitudes of unit holders in retail social mutual funds. (shrink)