Difficult moral issues in economic life, such as evaluating the impact of hostile takeovers and plant relocations or determining the obligations of business to the environment, constitute the raison d'etre of business ethics. Yet, while the ultimate resolution of such issues clearly requires detailed, normative analysis, a shortcoming of business ethics is that to date it has failed to develop an adequate normative theory.1 The failing is especially acute when it results in an inability to provide a basis for fine-grained (...) analyses of issues. Both general moral theories and stakeholder theory seem incapable of expressing the moral complexity necessary to provide practical normative guidance for many business ethics contexts. (shrink)

Difficult moral issues in economic life, such as evaluating the impact of hostile takeovers and plant relocations or determining the obligations of business to the environment, constitute the raison d'etre of business ethics. Yet, while the ultimate resolution of such issues clearly requires detailed, normative analysis, a shortcoming of business ethics is that to date it has failed to develop an adequate normative theory.1 The failing is especially acute when it results in an inability to provide a basis for fine-grained (...) analyses of issues. Both general moral theories and stakeholder theory seem incapable of expressing the moral complexity necessary to provide practical normative guidance for many business ethics contexts. (shrink)

ABSTRACT:This paper re-examines the import of Rawls’s theory of justice for private sector institutions in the face of the decline of the welfare state. The argument is based on a Rawlsian conception of justice as the establishment of a basic structure of society that guarantees a fair distribution of primary goods. We propose that the decline of the welfare state witnessed in Western countries over the past forty years prompts a reassessment of the boundaries of the basic structure in order (...) to include additional corporate institutions. A discussion centered on the primary good of self-respect, but extensible to power and prerogatives as well as income and wealth, examines how the legislator should intervene in private sector institutions to counterbalance any unfairness that results from the decline of the welfare state. (shrink)

ABSTRACT:Singer has recently argued that questions related to corporate governance are beyond the reach of Rawls’s political conception of justice. This is because justice applies to the basic structure of society, understood as society’s legally coercive structures, and because corporate governance cannot be considered part of this structure in political liberalism. This commentary challenges the second part of the argument. First, it suggests that the criterion used to exclude corporate governance from the basic structure—whether employees can exit economic organizations—is not (...) conclusive for corporate governance, notably as institutionalized in corporate law. Second, even if the focus were on corporate governance, it would still be possible to argue that it legally coerces citizens, if not employees, in a relevant way. Thus, the argument is not successful in demonstrating that political liberalism goes beyond its legitimate boundaries when considering that aspects of corporate governance may be matters of justice. (shrink)

This article develops contractarian business ethics by applying social contract arguments to a specific question: What are the pre-legal (or moral) rights and responsibilities of corporations? The argument uses a hypothetical social contract to show the existence of for-profit corporations in democratic capitalist societies is consistent with Rawls’s fundamental principles of justice. Corporations ought to have recognised their rights to be autonomous, to pursue private purposes, and to engage in economic activities. Corporations have a responsibility to respect the freedom and (...) human rights of all people, and not to interfere with government programs that ensure people have the education and training they need to find and keep corporate employment and that provide a safety-net that prevents destitution. If corporations have any other rights and responsibilities, those rights and responsibilities need to be established by actual social contracts, probably in the form of legitimate democratic processes. (shrink)

Recently, Amartya Sen and Martha Nussbaum have developed the capabilities approach to provide a model for understanding the effectiveness of programs to help the developing nations. The approach holds that human beings are fundamentally free and have a sense of human dignity. Therefore, institutions need to help people enhance this dignity by providing them with the opportunity to develop their capabilities freely. I argue that this approach may help support business ethics based on virtue. Since teleology has become problematic, virtue (...) ethics has had difficulty giving itself an ultimate justification. By combining virtue ethics with the capabilities approach, it becomes possible to ground virtue ethics on the basis of the existence of human dignity. This frees virtue ethics of the need for a strict teleology, replacing it with the notion that people must work to develop the capabilities of others although those capabilities are not pointed toward a definite goal. I further suggest that by grounding virtue ethics in capabilities, the actions of a virtuous manager become clearer. Rather than simply charging a manager with serving the public, the manager is charged with serving the stakeholders in a way that develops their capabilities. For example, a manager should not just give their employees what is just but must give them the environment and the encouragement to grow and to find fulfillment in their job. (shrink)

ABSTRACT:Little theoretical attention has been paid to the question of what obligations corporations and other business enterprises have to the four billion people living at the base of the global economic pyramid. This article makes several theoretical contributions to this topic. First, it is argued that corporations are properly understood as agents of global justice. Second, the legitimacy of global governance institutions and the legitimacy of corporations and other business enterprises are distinguished. Third, it is argued that a deliberative democracy (...) model of corporate legitimacy defended by theorists of political CSR is unsatisfactory. Fourth, it is argued that a Rawlsian theoretical framework fails to provide a satisfactory account of the obligations of corporations regarding global justice. Finally, an ethical conception of CSR grounded in an appropriately modest set of duties tied to corporate relationships is then defended. This position is cosmopolitan in scope and grounded in overlapping arguments for human rights. (shrink)

Why our workplaces are authoritarian private governments—and why we can’t see it One in four American workers says their workplace is a “dictatorship.” Yet that number almost certainly would be higher if we recognized employers for what they are—private governments with sweeping authoritarian power over our lives. Many employers minutely regulate workers’ speech, clothing, and manners on the job, and employers often extend their authority to the off-duty lives of workers, who can be fired for their political speech, recreational activities, (...) diet, and almost anything else employers care to govern. In this compelling book, Elizabeth Anderson examines why, despite all this, we continue to talk as if free markets make workers free, and she proposes a better way to think about the workplace, opening up space for discovering how workers can enjoy real freedom. (shrink)

"The terms do not have to be spelled out, because they have been set not by a meeting of minds of the parties, but by a default baseline defined by corporate, property, and employment law that establishes the legal parameters for the constitution of capitalist firms." p. 2.

This is a paperback edition of a major contribution to the field, first published in hard covers in 1977. The book outlines a general theory of rational behaviour consisting of individual decision theory, ethics, and game theory as its main branches. Decision theory deals with a rational pursuit of individual utility; ethics with a rational pursuit of the common interests of society; and game theory with an interaction of two or more rational individuals, each pursuing his own interests in a (...) rational manner. (shrink)

This book develops some of the most important themes of Sen's works over the last decade. He argues in a rich and subtle approach that we should be concerned with people's capabilities rather than their resources or welfare.

Edna Ullmann-Margalit provides an original account of the emergence of norms. Her main thesis is that certain types of norms are possible solutions to problems posed by certain types of social interaction situations. She presents illuminating discussions of Prisoners' Dilemma, co-ordination, and inequality situations.

This book brings together a team of leading theorists to address the question 'What is the right measure of justice?' Some contributors, following Amartya Sen and Martha Nussbaum, argue that we should focus on capabilities, or what people are able to do and to be. Others, following John Rawls, argue for focussing on social primary goods, the goods which society produces and which people can use. Still others see both views as incomplete and complementary to one another. Their essays evaluate (...) the two approaches in the light of particular issues of social justice - education, health policy, disability, children, gender justice - and the volume concludes with an essay by Amartya Sen, who originated the capabilities approach. (shrink)

Natural Justice is a bold attempt to lay the foundations for a genuine science of morals using the theory of games. Since human morality is no less a product of evolution than any other human characteristic, the book takes the view that we need to explore its origins in the food-sharing social contracts of our prehuman ancestors. It is argued that the deep structure of our current fairness norms continues to reflect the logic of these primeval social contracts, but the (...) particular fairness norm a society operates is largely a product of cultural evolution. In pursuing this point, the book proposes a naturalistic reinterpretation of John Rawls' original position that reconciles his egalitarian theory of justice with John Harsanyi's utilitarian theory by identifying the environment appropriate to each. (shrink)

In this superb introduction, Samuel Freeman introduces and assesses the main topics of Rawls' philosophy. Starting with a brief biography and charting the influences on Rawls' early thinking, he goes on to discuss the heart of Rawls's philosophy: his principles of justice and their practical application to society. Subsequent chapters discuss Rawls's theories of liberty, political and economic justice, democratic institutions, goodness as rationality, moral psychology, political liberalism, and international justice and a concluding chapter considers Rawls' legacy. Clearly setting out (...) the ideas in Rawls' masterwork, _A Theory of Justice_, Samuel Freeman also considers Rawls' other key works, including _Political Liberalism_ and _The Law of Peoples_. An invaluable introduction to this deeply influential philosopher, _Rawls_ is essential reading for anyone coming to his work for the first time. (shrink)

Based on the 1972 Radcliffe Lectures, this book presents a systematic treatment of the conceptual framework as well as the practical problems of measurement of inequality.

Employing the techniques of modern economic analysis, Professor Buchanan reveals the conceptual basis of an individual's social rights by examining the ...

What is the best standard of interpersonal comparison for a broadly egalitarian theory of social justice?1 A broadly egalitarian theory is one that holds that justice requires that institutions and individual actions should be arranged to improve, to some degree, the quality of life of those who are worse off than others, or very badly off, or both.2 I shall add the specification that to qualify as broadly egalitarian, the theory must in some circumstances require action to aid the worse (...) off or very badly off even when such action would not maximize the aggregate sum of utility, welfare, or well-being. Any such view needs a standard of interpersonal comparison that allows us to distinguish better off from worse off persons. Recently two types of standard have attracted adherents. One is the resource-oriented approach developed by John Rawls and others, and the other is the capability approach associated with the work of Amartya Sen and Martha Nussbaum.3 Rawls has affirmed that the proper measure is an index of primary social goods, flexible, multi-purpose resources such that any rational person wants more rather than fewer of them. (shrink)

This article addresses the recent call in business ethics literature for a better understanding of corporations as political actors or entities. It first gives an overview of recent attempts to examine classical issues in business ethics through a political lens. It examines different ways in which theorists with an interest in the normative analysis of business practices and institutions could find it desirable and fruitful to use a political lens. This article presents a distinction among four views of the relations (...) between corporations and politics: corporations as distributive agents, corporations as political communities, corporate practices and policies as citizenship issues, and corporations as active participants in the political process. This article finishes with an examination of three challenges that need to be overcome by the theory of the firm as a political actor. (shrink)