Whether or not capitalism is compatible with ethics is a long standing dispute. We take up an approach to virtue ethics inspired by Adam Smith and consider how market competition influences the virtues most associated with modern commercial society. Up to a point, competition nurtures and supports such virtues as prudence, temperance, civility, industriousness and honesty. But there are also various mechanisms by which competition can have deleterious effects on the institutions and incentives necessary for sustaining even these most commercially (...) friendly of virtues. It is often supposed that if competitive markets are good, more competition must always be better. However, in the long run competition enhancing policies that neglect the nurturing and support of the bourgeois virtues may undermine the continued flourishing of modern commercial society. (shrink)

When a series of corporate scandals erupted soon after the collapse of the 1990s bull market in equities, policy makers and reformers chiefly responded by augmenting and refining the checks and balances surrounding publicly traded corporations. Through measures such as the Sarbanes-Oxley Act of 2002, securities regulations were intensified and corporate governance was tightened. In essence, reformers followed the tradition of modern political philosophy, developed in the 17th and 18th centuries, in its insistence that pro-social outcomes are best produced through (...) institutional mechanisms that harness self-interest. The empirical evidence, however, suggests the institutional approach will do little to prevent future ethical breakdowns. To corroborate this finding, we survey the literature on board composition, auditor consulting practices, shareholder activism, and executive compensation. Consequently, we look to another stream of political philosophy, the ancient tradition comprising Plato and Aristotle, which argues that social groupings, such as corporations, work best when led by individuals of good character. Applying the ancient view to modern commercial realities, the paper concludes that Benjamin Franklin's attempt to connect virtuous character with enlightened self-interest offers a compelling ethic for corporate leaders. (shrink)

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Wealth and Virtue reassesses the remarkable contribution of the Scottish Enlightenment to the formation of modern economics and to theories of capitalism. Its unique range indicates the scope of the Scottish intellectual achievement of the eighteenth century and explores the process by which the boundaries between economic thought, jurisprudence, moral philosophy and theoretical history came to be established. Dealing not only with major figures like Hume and Smith, there are also studies of lesser known thinkers like Andrew Fletcher, Gershom Carmichael, (...) Lord Kames and John Millar as well as of Locke in the light of eighteenth century social theory, the intellectual culture of the University of Edinburgh in the middle of the eighteenth century and of the performance of the Scottish economy on the eve of the publication of the Wealth of Nations. While the scholarly emphasis is on the rigorous historical reconstruction of both theory and context, Wealth and Virtue directly addresses itself to modern political theorists and economists and throws light on a number of major focal points of controversy in legal and political philosophy. (shrink)

Charles Griswold has written a comprehensive philosophical study of Smith's moral and political thought. Griswold sets Smith's work in the context of the Enlightenment and relates it to current discussions in moral and political philosophy. Smith's appropriation as well as criticism of ancient philosophy, and his carefully balanced defence of a liberal and humane moral and political outlook, are also explored. This 1999 book is a major philosophical and historical reassessment of a key figure in the Enlightenment that will be (...) of particular interest to philosophers and political and legal theorists, as well as historians of ideas, rhetoric, and political economy. (shrink)

Counter to the popular impression that Adam Smith was a champion of selfishness and greed, Jerry Muller shows that the Inquiry into the Nature and Causes of the Wealth of Nations maintained that markets served to promote the well-being of ...

This paper argues that the MBA, probably the most successful academic program of the last 50 years, negatively affects the theory and practice of management with regard to ethics through its pedagogy, structure, and its underlying epistemic assumptions. In particular I seek to demonstrate how the syllabus, the pedagogy and the epistemological assumptions of MBA programs together make managers/leaders unable and unwilling to deal with ethics. I also argue that while the what and the how play a very important role, (...) it was only the emergence of a radical philosophical underpinning that has put management education on a negative trajectory. The paper thus examines MBA education from a meta-level perspective, connecting the pedagogical model with epistemological beliefs. (shrink)

This new edition of The Life of Adam Smith remains the only book to give a full account of Smith's life whilst also placing his work into the context of his life and times.

The second edition of Andrew Skinner's essays has been updated to take account of his latest thinking on Adam Smith's system of social and moral science and his experience of teaching Smith to a student audience. The material from the first edition has been extensively rewritten in the light of recent scholarship, and four new essays have been included. Each essay can be read as a self-contained unit, supported by a full bibliography and notes; the book as a whole expounds (...) a single coherent argument which demonstrates how Smith's works are inter-related. (shrink)

Many of the contemporary global challenges we face involve economics, and theologians serving the contemporary church cannot escape an engagement with economics. This paper explores the place of future hope in economics through an examination of Adam Smith’s treatment of the topic. It begins by outlining the eighteenth-century theological background of Smith’s work, including Stoicism, the Newtonian tradition of natural theology, and the Calvinism of the Scottish Enlightenment moderates. It argues that the future hope plays an important (and neglected) role (...) in Smith’s system. Future rewards and punishments are never invoked in a utilitarian manner; instead judgment and future life operate as a court of appeal where wrongs on this world are righted. The justice of this divine court of appeal is continuous with and reinforces the natural sense of justice we have in this present life. There can be no conflict between the two because, as Smith affirms, the same ‘great Director of nature’ is at work in both. For Smith the future state also operates as imaginative space where morality can be considered and renegotiated. Moving from the eighteenth to the twenty-first century, some comments are offered on hope and contemporary economics, particularly how they might be brought together again to more fruitfully engage with the global challenges we face. (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 ...

Adam Smith wrote two books, one about economics and the other about morality. How do these books go together? How do markets and morality mix? James Otteson provides a comprehensive examination and interpretation of Smith's moral theory and demonstrates how his conception of morality applies to his understanding of markets, language and other social institutions. Considering Smith's notions of natural sympathy, the impartial spectator, human nature and human conscience, the author addresses whether Smith thinks that moral judgments enjoy a transcendent (...) sanction. (shrink)

The moral psychology of sympathy is the linchpin of the sentimentalist moral theories of both David Hume and Adam Smith. In this paper, I attempt to diagnose the critical differences between Hume's and Smith's respective accounts of sympathy in order to argue that Smithian sympathy is more properly suited to serve as a basis for impartial moral evaluations and judgments than is Humean sympathy. By way of arguing this claim, I take up the problem of overcoming sympathetic partiality in the (...) construction of a moral point of view, acknowledged by both writers, as my primary platform. My contention is that Humean sympathy is too mechanistic to actually deliver an impartial adjudicatory perspective, and that Smithian sympathy, with its evaluative, imaginative components, succeeds where Hume's account falls short. The paper is comprised of six sections: (i) introductory remarks, (ii) a discussion of Humean sympathy, (iii) a discussion of Smithian sympathy and its distinctness, (iv) a critical analysis of Hume's attempt to correct for sympathetic partiality in the construction of the judicial spectator's general point of view, (v) a critical discussion of sympathetic partiality in Smithian sympathy & (vi) a critical analysis of Smith's construction of the impartial spectator perspective as a moral point of view. (shrink)

For most of the two hundred years or so that have passed since the publication of the Wealth of Nations, Adam Smith's writings on political and economic questions have been viewed within a liberal capitalist perspective of nineteenth- and twentieth- century provenance. This essay in interpretation seeks to provide a more historical reading of certain political themes which recur in Smith's writings by bringing eighteenth-century perspectives to bear on the problem. Contrary to the view that sees Smith's work as marking (...) the point at which 'politics' was being eclipsed by 'economics', it claims that Smith has a 'politics' which goes beyond certain political attitudes connected with the role of the state in economic affairs. It argues that he employs a consistent mode of political analysis which cannot be encompassed within the standard liberal capitalist categories, but can be understood by reference to the language and qualities of contemporary political debate, and of the eighteenth-century science of politics cultivated by Montesquieu and, above all, Hume, particularly as revealed by recent scholarship. A concluding chapter draws the various strands of the interpretation together to form a portrait of what Smith might legitimately be said to have been doing when he wrote on these matters. (shrink)

This classic and controversial book examines the roots of the idea of virtue, diagnoses the reasons for its absence in modern life, and proposes a path for its recovery.

This book develops the existing analyses of the founder of free market economics, and gives it a radical new extension by taking into account recent debates in literary theory.

The foundation for a system of morals, this 1749 work is a landmark of moral and political thought. Its highly original theories of conscience, moral judgment, and virtue offer a reconstruction of the Enlightenment concept of social science, embracing both political economy and theories of law and government.

Adam Smith argued in The Wealth of Nations and The Theory of Moral Sentiments that in order to create an effective and productive capitalist system, individuals must pursue interests of both the self and society. Despite this assertion, modern economic theory has become tightly focused on the pursuit of economic self-interests at the expense of other, higher order motives. This paper will argue that the tendency to employ such an egocentric strategy often generates externalities and inequalities that serve to detract (...) from the greater welfare of society. However, by tempering these economic self-interests with non-economically motivated considerations, this paper will suggest that individuals may create tremendous benefits to society, precisely as Smith outlined more than two centuries ago. In defense of this assertion, this paper will review an array of theoretical arguments and empirical findings that suggest that today''s entrepreneurs are not only seeking to satisfy both selfish and ethical motivations, but in so doing they are also contributing substantially to the overall welfare of society through job creation, wealth redistribution, and a lack of discrimination. As such, it appears that spirit and impact of the capitalist system that Smith envisioned is being realized through entrepreneurship. (shrink)

An eloquent and passionate examination of the opposition between Protestant conscience and Enlightenment reason in the seventeenth and eighteenth centuries.

In this first book-length comparative study of these leading eighteenth-century thinkers, Dennis Rasmussen highlights Smith's sympathy with Rousseau's concerns and analyzes in depth the ways in which Smith crafted his arguments to defend ...

n recent years, there has been a resurgence of academic interest in Adam Smith. As a consequence, a large number of PhD dissertations on Smith have been written by international scholars - in different languages, and in many diverse disciplines, including economics, women’s studies, philosophy, science studies, political theory and english literature: diversity which has enriched the area of study. In response to this activity, and in order to making these contributions more easily accessible to other Smith scholars, Leonidas Montes (...) and Eric Schliesser have edited this important new book. Of interest to Smith scholars and those interested in the history of economic thought in general, the contributions to this book are self-consciously interdisciplinary and skilfully employ many different methodologies. (shrink)

What darkness was the ‘Enlightenment’ supposed to have removed? The answer is irrational forms of religion. Most of the ‘enlightened’ took the view that revealed religion was irrational and that natural religion could be rational; but some were sceptical about natural religion too. Hume was the most honest and the most penetrating thinker of the latter group. His biographer, Professor E. C. Mossner, is not alone in believing that the Dialogues concerning Natural Religion is ‘his philosophical testament’.

This study analyses the influence that Adam Smith's philosophy had on his Wealth of Nations, and reveals the unity in Smith's extensive system of morals, politics, and economics. It concludes that Smith was motivated by a political ideal, which was moral liberalism.

We examine the writings of Adam Smith and Milton Friedman regarding their interpretation and use of the concept of self-interest.We argue that neither Smith nor Friedman considers self-interest to be synonymous with selfishness and thus devoid of ethicalconsiderations. Rather, for both writers self-interest embodies an other-regarding aspect that requires individuals to moderate theiractions when others are adversely affected. The overriding virtue for Smith in governing individual actions is justice; for Friedman it isnon-coercion.

The problem : commerce and corruption -- Smith's defense of commercial society -- What is corruption? : political and psychological perspectives -- Smith on corruption : from the citizen to the human being -- The solution : moral philosophy -- Liberal individualism and virtue ethics -- Social science vs. moral philosophy -- Types of moral philosophy : natural jurisprudence vs. ethics -- Types of ethics : utilitarianism, deontology, and virtue ethics -- Virtue ethics : modern, ancient, and Smithean -- Interlude (...) : the what and the how of TMS VI -- The what : Sith's "practical system of morality" -- The how : rhetoric, audience, and the methods of practical ethics -- The how : the ascent of self-love in three stages -- Prudence or commercial virtue -- The challenge : from praise to prudence -- Educating the vain : fathers and sons -- Self-interest rightly understood -- The advantages and disadvantages of prudence -- Magnanimity or classical virtue -- The problems of prudence and the therapy of magnanimity -- Up from individualism : desert, praiseworthiness, conscience -- Modernity, antiquity, and magnanimity -- The dangers of magnanimity -- Beneficence or christian virtue -- Between care and caritas -- Benevolence and beneficence and the human telos -- The character and purposes of the wise and virtuous man -- Wisdom and virtue and Adam Smith's apology -- Epilogue: The "economy of greatness". (shrink)

Although Adam Smith is best known as the founder of scientific economics and an early proponent of the modern market economy, political economy is only one part of his comprehensive intellectual system. Consisting of a theory of mind and its functions in language, arts, science and social intercourse, Smith's system was a towering contribution to the Scottish Enlightenment. This Companion provides an up-to-date examination of all aspects of Smith's thought. Collectively, the essays take into account his multiple contexts--Scottish, British, European, (...) Atlantic, biographical, institutional, political and philosophical. (shrink)

Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.

It is argued that Adam Smith criticizes David Hume's account of the origin of and continuing adherence to the rule of law for being not sufficiently Humean. Hume explained that adherence to the rule of law originated in the self-interest to restrain self-interest. According to Smith, Hume does not pay enough attention to the passions of resentment and admiration, which have their source in the imagination. Smith's offers a more naturalistic and evolutionary account of the psychological pre-conditions of the establishment (...) and morality of justice than Hume had. Yet, Smith's account also makes room for a thin conception of Lockean natural right to property, while rejecting the contractualist and rationalistic elements in Locke. It emerges that Smith severs the intimate connection that Hobbes and Hume made between justice and property. (shrink)

Smith's famous invocation of the invisible hand -according to which self-interest promotes the greater good — has popularly been seen as a fundamental challenge to business ethics, a field committed to the opposite premise that the public interest cannot be advanced unless economic egoism is restrained by a more socially conscious mindset, one that takes into account the legitimate needs of stakeholders and the reciprocity inherent in networked relationships. Adam Smith has been brought into the discipline to show that his (...) authority cannot be summoned to fully support the free market sceptics of business ethics. Little has been done, however, to illustrate that Smith's moral writings actually contain the fundamentals of a business ethics teaching for managers who necessarily work within a variety of networks. This article analyses his moral thought to infer a Smithean framework of business ethics for managers. Smith believes that self-interest should be subordinated to moral imperatives, even in the business world. However, Smith rejects the principles of corporate social responsibility on the argument that benevolent impulses cannot be expected to prevail in the commercial arena. Instead of consciously trying to advance the social good, Smith's ideal manager will endeavour to personally live up to the standards enforced by an impartial spectator of his conduct, a theoretical entity reflecting the ethical requirements posed by the manager's social networks and stakeholder relationships. While this internalized onlooker expects a limited degree of benevolence, the overriding demand is for the manager to abide by the dictums of justice and prudence. (shrink)

This volume is one of the most remarkable works in the history of economic thought. First published in 1893, its principal significance rests in its argument that economic theory, however technical or pragmatic, is necessarily formed by and derives its meaning from larger moral and philosophical systems and assumptions. Bonar traces the inexorable presence of this moral and philosophical element in a vast, though highly nuanced, survey of the economic aspect of major thinkers from Plato to Darwin and demonstrates how (...) modern economic thought, in turn, grew out of one or another branch of philosophy. Bonar begins with a consideration of Plato and Aristotle, examining their conceptions of wealth, production and distribution, and civil society. Discussions of the Stoics, Epicurians, and early Christianity explore complications introduced by these bodies of thought. His analysis of the classical and medieval world is followed by an extensive treatment of the concept of natural law, from the Renaissance through the Enlightenment, describing its influence and its relation to ideas of natural rights. The book's later sections concentrate on the dominant modes of ninteenth-cen-tury thought: utilitarianism, idealism, and materialism. Bonar identifies and explores the philosophical topics on which the conduct of technical economic analysis makes assumptions: human nature and human wants, the nature and role of the state, the relation of the individual to society, the nature and origin of property, and the role of ideals in socioeconomic life. He concludes by examining the implications for economics of the theory of evolution arising from the work of Darwin and others. The continuing interest of this volume for economists, philosophers, and sociologists lies in Bonar's contention that at the heart of the relationship of philosophy to economics is the problem of order: the ongoing need to reconcile conflicts between freedom and control, continuity and change, hierarchy and equality. In his reading, the fundamental question to which philosophy and economics are both brought to bear is that of changing the structure of power and opportunity in the social economy. This is, in short, a classic in the history of economics as well as the economic element in intellectual history. (shrink)

This article explores the influence of Stoicism and religion on Adam Smith. While other commentators have argued either that the main influence on Smith was Stoicism or that it was religion, the two influences have not been explicitly linked. In this article I attempt to make such a link, arguing that Smith can be seen as belonging to the strand of Christian Stoicism chiefly associated with his teacher, Francis Hutcheson. Finally, some comments are made about the implications of this interpretation (...) for current understanding of the work of Adam Smith. (shrink)

D. D. Raphael examines the moral philosophy of Adam Smith (1723-90), best known for his famous work on economics, The Wealth of Nations, and shows that his thought still has much to offer philosophers today. Raphael gives particular attention to Smith's original theory of conscience, with its emphasis on the role of 'sympathy' (shared feelings).

For a century and a half, the artists and intellectuals of Europe have scorned the bourgeoisie. And for a millennium and a half, the philosophers and theologians of Europe have scorned the marketplace. The bourgeois life, capitalism, Mencken’s “booboisie” and David Brooks’s “bobos”—all have been, and still are, framed as being responsible for everything from financial to moral poverty, world wars, and spiritual desuetude. Countering these centuries of assumptions and unexamined thinking is Deirdre McCloskey’s _The Bourgeois Virtues_, a magnum opus (...) that offers a radical view: capitalism is good for us. McCloskey’s sweeping, charming, and even humorous survey of ethical thought and economic realities—from Plato to Barbara Ehrenreich—overturns every assumption we have about being bourgeois. Can you be virtuous and bourgeois? Do markets improve ethics? Has capitalism made us better as well as richer? Yes, yes, and yes, argues McCloskey, who takes on centuries of capitalism’s critics with her erudition and sheer scope of knowledge. Applying a new tradition of “virtue ethics” to our lives in modern economies, she affirms American capitalism without ignoring its faults and celebrates the bourgeois lives we actually live, without supposing that they must be lives without ethical foundations. _High Noon_, Kant, Bill Murray, the modern novel, van Gogh, and of course economics and the economy all come into play in a book that can only be described as a monumental project and a life’s work. _The Bourgeois Virtues _is nothing less than a dazzling reinterpretation of Western intellectual history, a dead-serious reply to the critics of capitalism—and a surprising page-turner. (shrink)

This book defines the relationship between the thought of Adam Smith and that of the ancients---Plato, Aristotle, Cicero, and the Stoics. Vivenza offers a complete survey of all Smith's writings with the aim of illustrating how classical arguments shaped opinions and scholarship in the eighteenth century.

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)

IN THE LAST PART of the Theory of Moral Sentiments, Adam Smith puts his theory in a class with those of his contemporaries Francis Hutcheson and David Hume, namely, the systems that make sentiments the principle of approbation. Despite recognizing important differences with both of them, he thinks that since he has placed the origin of moral sentiments in sympathy, and in particular the fact that we are able to enter into the motives of the agent and get pleasure from (...) finding them appropriate to their cause, sentiments are the foundation of his theory of morals. Many of Smith’s commentators, in fact almost all of the most important studies over the last few years, reaffirm the author’s self-description. However, my aim in this paper is to challenge this view by showing that Smith’s system can also be plausibly seen as a theory of practical reasoning, and in some important aspects very similar to Aristotelian ethics. Surprisingly few scholars have seen this parallel. Laurence Berns, Samuel Fleischacker, Charles Griswold, and Gloria Vivenza are the latest exceptions, identifying several points of coincidence between Adam Smith and Aristotle’s ethics. None of them, however, has tied all these similarities under a unified interpretation, such as the one I propose here: The basic analogy between these theories, and the source of those particular coincidences, is the operation of practical reason. Moreover, and besides the common elements with Aristotle’s ethics, Smith’s reconstruction of practical reason simultaneously announces some of the main features of modern accounts of ethics, such as impartiality and universality as preconditions of moral judgment. The integration of these ancient and modern elements in a single coherent theory allows Smith’s TMS to overcome the insufficiencies and paradoxes of both these traditions, and it constitutes one of the most interesting and challenging proposals of modern ethics. (shrink)