Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

Any defense of universal norms involves drawing distinctions among the many things people actually desire. If it is to have any content at all, it will say that some objects of desire are more central than others for political purposes, more indispensable to a human being's quality of life. Any wise such approach will go even further, holding that some existing preferences are actually bad bases for social policy. The list of Central Human Capabilities that forms the core of my (...) political project contains many functions that many people over the ages have preferred not to grant to women, either not at all, or not on a basis of equality. To insist on their centrality is thus to go against preferences that have considerable depth and breadth in traditions of male power. Moreover, the list contains many items that women over the ages have not wanted for themselves, and some that even today many women do not pursue – so in putting the list at the center of a normative political project aimed at providing the philosophical underpinning for basic political principles, we are going against not just other people's preferences about women, but, more controversially, against many preferences (or so it seems) of women about themselves and their lives. To some extent, my approach, like Sen's, avoids these problems of paternalism by insisting that the political goal is capability, not actual functioning, and by dwelling on the central importance of choice as a good. But the notion of choice and practical reason used in the list is a normative notion, emphasizing the critical activity of reason in a way that does not reflect the actual use of reason in many lives. (shrink)

Coordination problems, problems in which each agent's expected utility depends upon what other agents do, pose a problem for act utilitarianism. When the agents are act utilitarians and know of each other that they are so, they seem unable to achieve optimal outcomes in certain coordination problems. I examine various ways the act utilitarian might attempt to solve this problem, where act utilitarianism is interpreted within the framework of subjective expected utility theory. In particular, a new method for computing expected (...) utility,dynamic deliberation, deserves examination as a possible act utilitarian solution to coordination problems. I argue that even dynamic deliberation fails to give the act utilitarian what he needs in coordination problems, and that the failure of act utilitarianism for such problems suggests the need for an alternative theory of moral choice along rule utilitarian lines. (shrink)

For this collection entitled “After Socialism,” we were asked to reflect upon such questions as what rectifications to present market capitalist systems might be desirable and whether there is any viable remnant in the socialist ideal that ought to be preserved. My basic answer to the latter is that the socialist principle of distribution “From each according to abilities, to each according to needs” remains a compelling moral ideal, superior to the resigned, complacent, or enthusiastic acceptance of economic inequality that (...) is offered by defenders of conventional capitalism and by many versions of liberalism. And so, my answer to the former is that the rectifications to present market capitalist systems that would be desirable would be to reduce the deep injustices and social malformations of these systems as much as possible by moving their distributive outcomes in the direction of the socialist ideal. (shrink)