A recurrent challenge in applied ethics concerns the development of principles that are both suitably general to cover various cases and sufficiently exact to guide behavior in particular instances. In business ethics, two central approaches—stockholder and stakeholder—often fail by one or the other requirement. The author argues that the failure is precipitated by their reliance upon “universal” theory, which views the justification of principles as both independent of their context of application and universally appropriate to all contexts. The author develops (...) a contextual interpretation of “constructivism” as an alternative approach, and argues that this alternative meets the above challenge. (shrink)

I outline a number of parallels between trust and distrust, emphasising the significance of situations in which both trust and distrust would be an imposition upon the (dis)trustee. I develop an account of both trust and distrust in terms of commitment, and argue that this enables us to understand the nature of trustworthiness. Note that this article is available open access on the journal website.

It is common for people to misstate their bargaining positions during business negotiations. This paper will focus on cases of the following sort: I am selling a house and tell a prospective buyer that $90,000 is absolutely the lowest price that I will accept, when I know that I would be willing to accept as little as $80, 000 for the house. This is a lie according to standard definitions of lying-it is a deliberate false statement which is intended to (...) deceive others. I will defend the following two theses:a. Appearances to the contrary, this kind of bluffing typically does not constitute lying. (I will argue that standard dictionary definitions of lying are untenable and defend an alternative definition hinted at, but never clearly formulated by, W. D. Ross. On my definition, deliberate false statements about one's negotiating position would rarely constitute lies in this society.)b. It is usually permissible to misstate one's bargaining position when one has good reason to think that one's negotiating partner is doing the same and it is usually impermissible to misstate one's negotiating bargaining if one does not have good reason to think that the other party is misstating her position. (shrink)

According to a common assumption, truthfulness cannot have an intrinsic value in business. Instead, it is considered only instrumentally valuable for business, because it contributes to successful trust-building. Some authors deny truthfulness even this limited role by claiming that truth-telling is not an essential part of business, which is a sui generis practice like poker. In this article, I argue that truthfulness has indeed an intrinsic value in business and identify the conceptual confusions underlying the opposite view. My account of (...) truthfulness as a virtue shows that truthfulness is both valuable for its own sake and instrumental to further valuable goals. It helps pinpoint the implicit contradiction in claiming that truthfulness has an instrumental value only. I then challenge the reasons for considering business exempt from the constraints of truthfulness and elaborate on the analogy between game and business, which in fact supports instead of undermining my claim that business is a truthful practice. Finally, I illustrate my argument with a case study of the current crisis of trust faced by the pharmaceutical industry. (shrink)

Can we decide to trust? Sometimes, yes. And when we do, we need not believe that our trust will be vindicated. This paper is motivated by the need to incorporate these facts into an account of trust. Trust involves reliance; and in addition it requires the taking of a reactive attitude to that reliance. I explain how the states involved here differ from belief. And I explore the limits of our ability to trust. I then turn to the idea of (...) trusting what others say. I suggest that we sometimes decide to trust people to be sincere and knowledgeable; and that having taken this attitude towards them, we come to believe what they say. I spell out some consequences that this has for an account of testimony, and for van Fraassen's decision theoretic principle of Reflection. (shrink)

On the one hand, bluffing in business seems to bear a strong resemblance to lying, and therefore might be thought to be prima facie impermissible. On the other, many people have the intuition that bluffing is an appropriate and morally permissible negotiating tactic. Given this tension, what is the moral standing of bluffing in business? In this paper, I will consider influential accounts of both Albert Carr and Thomas Carson, and I will present my criticisms thereof. Drawing off of these (...) accounts, I will then develop my own argument as to why bluffing in business is morally permissible, which will be that bluffing is a practice that should be endorsed by all rational negotiators. (shrink)

I argue that lying in business negotiations is pro tanto wrong and no less wrong than lying in other contexts. First, I assert that lying in general is pro tanto wrong. Then, I examine and refute five arguments to the effect that lying in a business context is less wrong than lying in other contexts. The common thought behind these arguments—based on consent, self-defence, the “greater good,” fiduciary duty, and practicality—is that the particular circumstances which are characteristic of business negotiations (...) are such that the wrongness of lying is either mitigated or eliminated completely. I argue that all these “special exemption” arguments fail. I conclude that, in the absence of a credible argument to the contrary, the same moral constraints must apply to lying in business negotiations as apply to lying in other contexts. Furthermore, I show that for the negotiator, there are real practical benefits from not lying. (shrink)

This paper explores the notion that business calls for an adversarial ethic, akin to that of sport. On this view, because of their competitive structure, both sport and business call for behaviours that are contrary to ‘ordinary morality’, and yet are ultimately justified because of the goods they facilitate. I develop three objections to this analogy. Firstly, there is an important qualitative difference between harms risked voluntarily and harms risked involuntarily. Secondly, the goods achieved by adversarial relationships in sport go (...) beyond the function of sport, i.e. to entertain audiences. Thirdly, the most plausible account of the athlete’s motivational development starts with their love of the sport, which can explain a commitment to the sporting ethics in a way that is not paralleled in business. I close by drawing attention to the ways in which an Aristotelian conception of business ethics may be able to accommodate these objections. (shrink)

This paper draws a distinction between ‘right MacIntyreans’ who are relatively optimistic that MacIntyre’s vision of ethics can be realised in capitalist society, and ‘left MacIntyreans’ who are sceptical about this possibility, and aims to show that the ‘left MacIntyrean’ position is a promising perspective available to business ethicists. It does so by arguing for a distinction between ‘community-focused’ practices and ‘excellence-focused’ practices. The latter concept fulfils the promise of practices to provide us with an understanding of the best work (...) for humankind and highlights the affinities between MacIntyre’s concept of a practice and Marx’s conception of good work as free, creative activity. The paper concludes with a suggestion that we reflect on the best forms of work so that we can strive to ensure the very best activities, those most consonant with our flourishing, one day become available to all. (shrink)

Spoofing is the act of placing orders to buy or sell a financial contract without the intention to have those orders fulfilled in order to create the impression that there is a large demand for that contract at that price. In this article, I deny the view that spoofing in financial markets should be viewed as morally permissible analogously to the way bluffing is permissible in poker. I argue for the pro tanto moral impermissibility of spoofing and make the case (...) that spoofing is disanalogous from bluffing in at least one important regard—speculative trading serves an important economic role, whereas poker does not. (shrink)

Business ethics denial refers to one of two claims about moral motivation in a business context: that there is no need for it, or that it is impossible. Neither of these radical claims is endorsed by serious theorists in the academic fields that study business ethics. Nevertheless, public commentators, as well as university students, often make claims that seem to imply that they subscribe to some form of business ethics denial. This paper fills a gap by making explicit both the (...) various forms that business ethics denial can take, and the reasons why such views are ultimately implausible. The paper argues that this type of serious engagement with business ethics denial should be an important part of the job description for teachers of business ethics. (shrink)

In a 2015 article entitled “The Irrelevance of Ethics,” MacIntyre argues that acquiring the moral virtues would undermine someone’s capacity to be a good trader in the financial system and, conversely, that a proper training in the virtues of good trading directly militates against the acquisition of the moral virtues. In this paper, we reconsider MacIntyre’s rather damning indictment of financial trading, arguing that his negative assessment is overstated. The financial system is in fact more internally diverse and dynamic, and (...) more reformable, than suggested by MacIntyre’s treatment. The challenge at the heart of MacIntyre’s claims can be crystallized in the question, “under which conditions, if any, can a person be an effective trader and simultaneously live a worthy human life?” We conclude that there are realistic possibilities of integrity and growth in moral virtue for those who work in the financial sector, at least for those operating in a work environment minimally permissive toward virtue, provided they possess characters of integrity and genuine aptitude for the skills and attitudes required in their professional tasks. (shrink)

Recent concern over “high frequency trading” (HFT) has called into question the fairness of the practice. What does it mean for a financial market to be “fair”? We first examine how high frequency trading is actually used. High frequency traders often implement traditional beneficial strategies such as market making and arbitrage, although computers can also be used for manipulative strategies as well. We then examine different notions of fairness. Procedural fairness can be viewed from the perspective of equal opportunity, in (...) which all market participants are treated alike. The same rules apply to HFT as to other traders. Another approach to fairness is in the equality of outcomes. Many HFT strategies are beneficial to other market participants, so one cannot categorically denounce the practice as unfair. Other strategies, for both high and low frequency trading, are not. It is thus important to distinguish between the technology and the use of the technology to make judgments on fairness. (shrink)

In Why Not Socialism?, GA Cohen defines socialism as the combined application of two moral principles: the egalitarian principle and the principle of community. The desirability of a social order organized around these two principles is illustrated by the ‘camping trip’ example. After describing the fundamental features of the camping trip scenario at reasonable length, Cohen argues that the desirability of such a social model is nearly self-explanatory, concluding therefore that the most significant challenges to socialism lie in its feasibility. (...) This article argues that the desirability of the camping trip model as an appropriate ideal for society is less obvious than Cohen acknowledges. To argue my point, I shall compare the camping trip with another social practice that is equally small sized and characterized by strong emotional ties among its members, but in which the conditions of what I shall call ‘goal-monism’ and discontinuity in time do not hold, namely, the family. (shrink)

This paper contrasts universalist approaches to justice with contextualist approaches. Universalists hold that basic principles of justice are invariant — they apply in every circumstance in which questions of justice arise. Contextualists hold that different principles apply in different contexts, and that there is no underlying master principle that applies in all. The paper argues that universalists cannot explain why so many different theories of justice have been put forward, nor why there is so much diversity in the judgements that (...) ordinary people make. Several strategies open to universalists are considered and found to be wanting. Contextualism is defended against the charge that it cannot explain why contextually specific principles are all principles of justice, the charge that it can offer no practical guidance when principles conflict, and the charge that it inevitably collapses into a form of conventionalism. Key Words: justice • universalism • contextualism • conventionalism • Rawls • Walzer. (shrink)

This paper begins by summarizing and distilling MacIntyre’s sweeping critique of modern business. It identifies the crux of MacIntyre’s critique as centering on the fundamental Aristotelian concepts of internal goods and practices. MacIntyre essentially follows Aristotle in arguing that by privileging external goods over internal goods, business activity – and certainly modern capitalistic business activity – corrupts practices. Thus, from the perspective of virtue ethics, business is morally indefensible. The paper continues with an evaluation of MacIntyre’s arguments. The conclusion is (...) drawn that MacIntyre’s critique, although partially valid, does not vitiate modern business as he claims. In short, modern business need not of necessity be antithetical to individuals’ pursuit of internal goods within practices. (shrink)

A number of business writers have argued that business is a game and, like a game, possesses its own special rules for acting. While we do not normally tolerate deceit, bluffing is not merely acceptable but also expected within the game of poker. Similarly, lies of omission, overstatements, puffery and bluffs are morally acceptable within business because it, like a game, has a special ethic which permits these normally immoral practices. Although critics of this reasoning have used deontological and utilitarian (...) arguments to show that deceit in business is just an immoral as it is in any other realm of human practice, little attention has been paid to the fact that the argument is one of analogy. The analogical argument for business' special ethic is only as strong as the alleged similarities between business and game-playing. This paper argues that this analogy is quite weak and incapable of either providing much insight into business or of offering a reason to think that the ethics of business are, or even could be, like those of a game. (shrink)

In this essay I will argue, as does Bernard Williams, that lying and misleading are both commonly wrong because they involve an aim to breach a trust. I will also argue, contrary to Williams, that lying and misleading threaten trust differently, and that when they are wrong, they are wrong differently. Indeed, lying may be wrong when misleading is not.

This paper begins by summarizing and distilling Macintyre's sweeping critique of modern business. It identifies the crux of Macintyre's critique as centering on the fundamental Aristotelian concepts of internal goods and practices. Maclntyre essentially follows Aristotle in arguing that by privileging external goods over internal goods, business activity -and certainly modern capitalistic business activity -corrupts practices. Thus, from the perspective of virtue ethics, business is morally indefensible. The paper continues with an evaluation of Macintyre's arguments. The conclusion is drawn that (...) Macintyre's critique, although partially valid, does not vitiate modern business as he claims. In short, modern business need not of necessity be antithetical to individuals' pursuit of internal goods within practices. (shrink)

All of finance is now automated, most notably high frequency trading. This paper examines the ethical implications of this fact. As automation is an interdisciplinary endeavor, we argue that the interfaces between the respective disciplines can lead to conflicting ethical perspectives; we also argue that existing disciplinary standards do not pay enough attention to the ethical problems automation generates. Conflicting perspectives undermine the protection those who rely on trading should have. Ethics in finance can be expanded to include organizational and (...) industry-wide responsibilities to external market participants and society. As a starting point, quality management techniques can provide a foundation for a new cross-disciplinary ethical standard in the age of automation. (shrink)

All of finance is now automated, most notably high frequency trading. This paper examines the ethical implications of this fact. As automation is an interdisciplinary endeavor, we argue that the interfaces between the respective disciplines can lead to conflicting ethical perspectives; we also argue that existing disciplinary standards do not pay enough attention to the ethical problems automation generates. Conflicting perspectives undermine the protection those who rely on trading should have. Ethics in finance can be expanded to include organizational and (...) industry-wide responsibilities to external market participants and society. As a starting point, quality management techniques can provide a foundation for a new cross-disciplinary ethical standard in the age of automation. (shrink)

Although the managerial practice of cheating spans complex and heterogeneous situations, most business ethics scholars consider that the very idea of cheating is indefensible on moral grounds, and quickly dismiss it as wrongdoing. This paper proposes to fine-tune this conventional moral assessment by arguing that some forms of cheating can be justified—or at least excused. To do so, it starts with a value-free definition of cheating that covers a wide diversity of situations: “breaking the rules while deliberately leading or allowing (...) others to think they have been respected.” While using this definition at the metaethical level, the paper contends that the moral assessment of cheating depends on the obligation to comply with the rules. There are rules which do not entail moral obligations, and there are special circumstances where other more important obligations override the obligation to comply with the rules. Furthermore, the paper argues that respecting the penalty rules also influences the moral assessment of cheating on the rules. The key interest of this endeavor lies in contributing to building a more solid theoretical framework for the study of cheating in management, which may replace our common prejudices and basic intuitions on this matter. (shrink)

The moral status of business bluffing is a controversial issue. On the one hand, bluffing would seem to be relevantly similar to lying and deception. Because of this, business bluffing can be taken to be an activity that is at least prima facie morally condemnable. On the other hand, it has often been claimed that in business bluffing is part of the game and that therefore there is nothing morally questionable in business bluffing. In a recent issue of this journal, (...) Fritz Allhoff puts forward a novel defence of business bluffing. In this article, I will examine Allhoff’s arguments for the moral acceptability of business bluffing and argue that they are implausible. (shrink)

In Andrea Sangiovanni’s words, practice-dependent theorists hold that “[t]he content, scope, and justification of a conception of [a given value] depends on the structure and form of the practices that the conception is intended to govern”. They have tended to present this as methodologically innovative, but here I point to the similarities between the methodological commitments of contemporary practice-dependent theorists and others, particularly P. F. Strawson in his Freedom and Resentment and Bernard Williams in general. I suggest that by looking (...) at what Strawson and Williams did, we can add to the reasons for adopting one form or another of practice-dependence. The internal complexity of the practices we hope our principles will govern may require it. However, this defence of practice-dependence also puts pressure on self-identified practice-dependence theorists, suggesting that they need to do more work to justify the interpretations of the practices their theories rely on. (shrink)

ABSTRACT:The ethics of high frequency trading are obscure, due in part to the complexity of the practice. This article contributes to the existing literature of ethics in financial markets by examining a recent trend in regulation in high frequency trading, the prohibition of deception. We argue that in the financial markets almost any regulation, other than the most basic, tends to create a moral hazard and increase information asymmetry. Since the market’s job is, at least in part, price discovery, we (...) argue that simplicity of regulation and restraint in regulation are virtues to a greater extent than in other areas of finance. This article proposes criteria for determining which high-frequency trading strategies should be regulated. (shrink)