We offer a concise introduction to the methodology of order-ethics and highlight how it connects aspects of economic theory and, in particular, game theory with traditional ethical considerations. The discussion is conducted along the lines of five basic propositions, which are used to characterize the methodological approach of order ethics.

Can modern economics adequately embrace ethical issues or does its theoretical apparatus prohibit such a relationship? In December 1994, social scientists from the fields of economics, philosophy, political science and anthropology attended a workshop to discuss the current state of the economics-ethics nexus by way of examining both past and contemporary practice. The proceedings of this conference presented a wide variety of attitudes and includes an examination of economics and ethics from an economist and (...) a philosopher's perspective, in order to assess the contemporary implications of the relationship, and in the late nineteenth century against the background of a long utilitarian tradition. This is a set of stimulating reflections by practitioners - including Chin Liew Ten, Bob Coats and Geoffrey Brennan - on the tricky associations between economics and ethics. (shrink)

This book examines the theoretical foundations of order ethics and discusses business ethics problems from an order ethics perspective. Order ethics focuses on the social order and the institutional environment in which individuals interact. It is a well-established paradigm in European business ethics. The book contains articles written by leading experts in the field and provides both a concise introduction to order ethics and short summary articles homing in on (...) specific aspects of the order-ethical paradigm. It presents contributions describing fundamental concepts, historical roots, and the economic, social, and philosophical background of the theory. The second part of the handbook focuses on the theory's application in business, society, and politics, casting new light on an array of topics that loom large in contemporary ethical discourse.​. (shrink)

In this chapter, we present supporting arguments for the claim that Order Ethics is a school of thought within ethics which is especially open to empirical evidence. With its focus on order frameworks, i.e., incentive structures, Order Ethical advice automatically raises questions on implementability, efficacy, and efficiency of such recommended institutions, all of which are empirical questions to a good extent. We illustrate our arguments by presenting a small selection of experiments from economics that (...) we consider highly informative for Order Ethics. These experiments vary in their details but share one common theme: individual decision-making and its aggregate results are tested against the background of incentive structures. In particular, these studies provide first insights on how unregulated markets influence moral behavior over time, how trial-and-error experiences convince subjects to migrate to more efficient institutions, and how default rules can influence fundamental choices of people. We argue that Order Ethics, for which implementability of any moral claim is an essential requirement, can largely benefit from the use of such experimental methods. Finally, we suggest the provision of self-commitment devices as one example of smart policy design that avoids paternalistic intrusions into individual liberty. (shrink)

The argument presented here is that we live in a nihilistic culture founded on a nihilistic metaphysics, and to recover ethics it is not merely a matter of returning to virtue ethics, as called for by Alasdair MacIntyre, but the development of a new metaphysics and the incorporation of this into a new socio-economic order.

In the present world order unbridled forces of free market capitalism are frequently cited for much of the social injustice, inequity, and disparity of wealth between the rich and the poor. Although history''s verdict in favor of the free markets could hardly be harsher or clearer, it is clear that after the initial wave of triumph, the free market paradigm has developed some cracks in its façade. What marks the trail of such sustained and pronounced move toward free markets (...) in terms of ethics, morality, social welfare and social justice? How does one keep a social score in this seemingly relentless and irreversible move all over the world toward free market capitalism?In this paper we shall attempt to address these and related questions. Drawing on concepts from organization theory and social philosophy and using publicly available financial information, we shall illustrate how, amidst the myriad and mixed noises, some sense of order and signal can be discerned in addressing issues of equity and social justice. Toward this end, first, we provide a broad contrast between two models of financial markets: the command model and the free market model and proceed to examine publicly available financial information and analyze the trends and patterns with graphical representations using publicly available data from Handbook of International Economic Statistics. Next, we explore the implications of financial performance measures for social welfare and social justice and discuss the social perils of free markets using the Mexican and Asian Financial crises as the focal points. Finally, we present a set of recommendations for smoother structural transition. (shrink)

Thomas Pogge has argued, famously, that ‘we’ are violating the rights of the global poor insofar as we uphold an unjust international order which provides a legal and economic framework within which individuals and groups can and do deprive such individuals of their lives, liberty and property. I argue here that Pogge’s claim that we are violating a negative duty can only be made good on the basis of a substantive theory of collective action; and that it can only (...) provide substantive ethical guidance when combined with an account of how collective action gives rise to forward-looking responsibility and/or accountability on an individual level. I consider accounts of these two topics given in work by Peter French and Christopher Kutz; and I argue that neither of them give Pogge what he needs. Although there is a sense in which 'we' can be said to be violating the rights of the worst off, the sense in which this is true does not generate any plausible action-guiding claims for individuals. (shrink)

During the current financial crisis, the need for an alternative to a laissez-faire ethics of capitalism (the Milton Friedman view) becomes clear. I argue that we need an order ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. -/- I will point to some aspects of order ethics which highlight the importance of rules, e.g. global rules for the financial markets. In this regard, order (...) ethics (“Ordnungsethik”) is the complement of the German conception of “Ordnungspolitik” which also stresses the importance of a regulatory framework. This framework is needed not to tame the market, but to make it more profitable in the long run. -/- The conception of order ethics relies heavily on contractarianism, especially on James Buchanan’s work. Unlike many other conceptions of ethics, it does not start with an aim to achieve, but rather with an account of what the social world – in which ethical norms have to be implemented – is like. Our social world is different from the pre-modern one. Pre-modern societies played zero-sum games in which people could only gain significantly at the expense of others. And the types of ethics that we are still used to today have been developed within these pre-modern societies. -/- Modern societies, by contrast, can be characterised – by economists and other social theorists alike – as societies with continuous growth. This growth has only been made possible by the modern competitive market economy which enables everyone to pursue his own interests within a carefully devised institutional system. In this system, positive sum games are played, which makes it in principle possible to improve the position of every individual at the same time. Most kinds of ethics, however, resulting from the conditions of pre-modern societies, ignore the possibility of win-win-situations and instead require us to be moderate, to share, to sacrifice, as this would have been functional in zero-sum games. These conceptions distinguish – in more or less strict ways – between self-interest and altruistic motivation. Self-interest, more often than not, is ultimately seen as something evil. -/- Such an ethics cannot be functional in modern societies. Ethical concepts lag behind. Within zero-sum games, it was necessary to call for temperance, for moderate profits, or for a condemnation of lending money at interest. Within positive-sum games, however, the morally desired result of a social process cannot be brought about by changes in motivation, by switching from ‘egoistic’ to ‘altruistic’ motivation. The second theoretical element introduced by order ethics is the distinction between actions and rules, which was already mentioned. Traditional ethics concerns actions: It calls directly for changes in behaviour. This is a consequence of pre-modern conditions as reconstructed before: People in the pre-modern world were only able to control their actions, not so much however the conditions of their actions. In particular, rules like laws, constitutions, social structures, the market order, and also ethical norms have remained stable for centuries. In modern societies, this situation has changed entirely. The rules governing our actions have increasingly come under our control. -/- In this situation, ethics has to focus on rules. Morality must be incorporated in incentive-compatible rules. Direct calls for changes in behaviour without changes in the rules lead only to an erosion of compliance with moral norms. Individuals that continue to behave ‘morally’ will be singled out, because the incentives have not been changed. Moral norms which are to be justified cannot require people to abstain from pursuing their own advantage. People abstain from taking ‘immoral’ advantages only if adherence to ethical norms yields greater benefits over the planned sequence of actions than defection in the single case. Thus ‘abstaining’ is not abstaining in the long run, it is rather an investment in expectations of long-term benefits. By adhering to ethical norms, I become a reliable partner for interactions. The norms do indeed constrain my actions, but they simultaneously expand my options in interactions. And people consent to rules only if these rules hold greater advantages for them, at least in the long run. -/- In general, ethics cannot require people to abandon their individual calculation of advantages. However, it may suggest improving one’s calculation, by calculating in the long run rather than in the short run, and by taking into account the interests of our fellows, as we depend on their acceptance for reaching an optimal level of well-being, especially in a globalized world full of interdependence. -/- The problem of implementation can now be placed at the beginning of a conception of order ethics, justified with reference to the conditions of modern societies I have sketched. Under the conditions of pre-modern societies, an ethics of temperance had evolved that posed simultaneously the problems of implementation and justification. The implementation of well-justified norms or standards could then be regarded as unproblematic, because the social structures allowed for a direct face-to-face enforcement of norms. Pre-modern societies not only favored an ethics of temperance, they also had the instrument of face-to-face-sanctions within their smaller and non-anonymous communities. This instrument is no longer functional in modern anonymous societies, and so we have to face up to the problem of implementation right at the start of our ethical conception. Simultaneously, an order ethics relies on the implementation of sanctions for enforcing incentive-compatible rules. In modern societies, rules and institutions, to a large extent, must fulfil the tasks that were, in pre-modern times, fulfilled by moral norms, which in turn were sanctioned by face-to-face sanctions. Norm implementation in modern societies thus works by setting adequate incentives in order to prevent the erosion of moral norms, which would happen if ‘moral’ actors were systematically threatened with exploitation by other, less ‘moral’ actors. -/- This conception of order ethics is then elaborated further in the area of business ethics. -/- . (shrink)

According to the order ethics approach to business ethics, moral rules must be im-plemented by institutions that provide incentives for following the rules. As a minimal (normative) condition, these institutions must be able to motivate the homo eco-nomicus. But even if an institution passes this test, it will only motivate actual people (i.e. the homo psychologicus) to follow moral rules, if they have the relevant compe-tences and self-efficacy beliefs. Consequently, good institutional design includes com-prehensive change management. At (...) this point applied order ethics can draw on find-ings of psychology and experimental economics. It turns out, that role models can support self-efficacy beliefs and are thus more important for order ethics than has traditionally been assumed. (shrink)

The end of the cold war has elevated environmental issues to the highest level of concern for humanity while creating a world order dominated by the United States of America and other Western nations. This new power structure may likely lead to increased business activity in many parts of the world, as nations formerly preoccupied with the cold war turn their attention to economic development. This paper examines the linkages among ethics, economic development and protection and restoration of (...) the environment in The New World Order. (shrink)

Is the minimum wage ethically justifiable? In this chapter, we attempt to answer this question from an order-ethical perspective. To this end, we develop two simple game theoretical models for different types of labour markets and derive policy implications from an order-ethical viewpoint. Our investigation yields a twofold conclusion. Firstly, order ethicists should prefer a tax-funded wage subsidy over minimum wages, if they assume that labour markets are perfectly competitive. Secondly, order ethics suggests that the (...) minimum wage can be ethically justified if employers have monopsony power in the wage setting process. As it turns out, then, order ethics neither favours nor disfavours the minimum wage. Rather, it implies conditions under which this form of labour market regulation is justified and, hence, allows empirical science to play a great role in answering the ethical questions that arise in the context of the minimum wage debate. This illustrates one of order ethics’ strengths, viz. the fact that it tends to de-ideologize the debate about ethical issues. (shrink)

The purpose of Pope John Paul''s encyclicalCentesimus Annus (CA) is to propound the foundations of a just economic order and to sketch its essential characteristics. As such he essentially provides an orientation or moral compass for the political economy rather than a precise road map. This article first reviews the principal components of CA and then analyzes and evaluates its central contentions on both cultural and economic grounds.

Humankind is currently witnessing, and shaping, the most significant and rapid paradigm shift in human history - a paradigm shift of major demographic, economic, ecological, and geo-political dimensions. For the first time in human history - we are faced not with just one crisis - but a confluence of several crises; crises that are not related to a single tribe or community - a single nation -or a single region of the world - but are each global in scale. To (...) meet the challenges of these global crises will require an equally historic paradigm shift; a paradigm shift with a strong environmental ethic that restores ecological balance and integrity to our failing ecosystems, and that addresses the critical issue of climate change; a paradigm shift toward an economic system that brings about an end to poverty — and a paradigm that brings an end to war as a means to solving conflict, as it is only through a global family in harmony and peace with itself, that we can solve the unprecedented global issues facing our one common home, planet earth - and our one common future as a global family. The travel and tourism industry has, and will continue to play a vital and leading role toward this paradigm shift, and as the world's largest industry involving virtually every nation in the world — will be the central pillar of a Peace through Commerce movement. The dramatic growth of tourism in the past 60 years is one of the most remarkable economic and social phenomena of our time. The industry has grown from a total of 25 million international arrivals in 1950 to a projected 1 billion international arrivals in 2010, and a further projection to 1.6 billion by 2020. Beginning with the emergence of "Ecotourism" in the late 1980' s, there are an increasing number of tourism market segments which fall within a broad category that can be called "Peace Tourism," and classified within a framework that includes peace within ourselves, peace with others, peace with nature, peace with past generations, peace with future generations, and peace with our Creator. Since its birth in 1986, the International Institute for Peace through Tourism (IIPT) has been promoting these values of tourism together with its vision of Travel and Tourism as the world's first "Global Peace Industry" - an industry that promotes and supports the belief that every traveler is potentially an "Ambassador for Peace." This "higher purpose of tourism" includes the key role of tourism in promoting international understanding and collaboration among nations; environmental protection and preservation of biodiversity; enhancing cultures and valuing heritage; contributing to sustainable development and poverty reduction; and healing wounds of conflict. (shrink)

Our economic system, the market economy, is a part of a broader system or “society.” We frequently study the operation of the market economy as if it were autonomous, even though there are many complex and mutual relationships between society, the economic system and the other systems – political, cultural, religious, legal, etc. – that form part of society. In a market economy we may identify several components: a frame or background in which the economic activity takes place, a set (...) of ideas and theories, the values shared by this society, the set of institutions, norms and rules that control the economic behavior of people, and the incentives or motivations of the economic agents. The play of these elements defines the operation of a market economy. Is ethics an institution, or does it belong to the set of values and ideas? In this paper I will discuss the role of institutions, norms and rules in society, with special reference to the economic system, in order to gain insight into the relationship between institutions and ethics. I study first the concept and features of social institutions and norms; second, institutional change, and third, the relationship between ethics and institutions. (shrink)

In this book a distinguished group of environmental experts argues that in order to solve global environmental problems, we must view them in a broad interdisciplinary perspective that recognizes the relations—the interconnected circle—among ecology, economics, and ethics. Currently the circle is broken, they say, because environmental policy is decided on short-term estimations of material that take little account of the economic or moral burdens that will be borne by future generations if we deplete our resources now. We (...) must, assert the authors, have a better knowledge of the science underlying our environmental problems, we must understand their causes and consequences in relation to our economic and political systems, and we must recognize that an effective response will require a shift in a technologically oriented society’s ethical attitude toward the natural environment. The authors address a wide range of concerns from global atmospheric degradation and spreading toxification of the environment to loss of forests and massive species extinctions. They offer to general readers, students, and professionals practical assessments and remedies for many of these problems. They suggest, for example, mechanisms that provide economic incentives for conservation; engineering and technical adaptations to use resources more effectively and dispose of waste products; better economic accounting procedures for measuring the real environmental costs of our depletion of natural resources; and a remodeled education system that better prepares us to see each individual’s responsibility to the environment. (shrink)

As the twentieth century draws to a close and the rush to globalization gathers momentum, political and economic considerations are crowding out vital ethical questions about the shape of our future. Now, Hans Kung, one of the world's preeminent Christian theologians, explores these issues in a visionary and cautionary look at the coming global society. How can the new world order of the twenty first century avoid the horrors of the twentieth? Will nations form a real community or continue (...) to aggressively pursue their own interests? Will the Machiavellian approaches of the past prevail over idealism and a more humanitarian politics? What role can religion play in a world increasingly dominated by transnational corporations? Kung tackles these and many other questions with the insight and moral authority that comes from a lifetime's devotion to the search for justice and human dignity. Arguing against both an amoral realpolitik and an immoral resurgence of laissez faire economics, Kung defines a comprehensive ethicfounded on the bedrock of mutual respect and humane treatment of all beingsthat would encompass the ecological, legal, technological, and social patterns that are reshaping civilization. If we are going to have a global economy, a global technology, a global media, Kung argues, we must also have a global ethic to which all nations, and peoples of the most varied backgrounds and beliefs, can commit themselves. "The world," he says, "is not going to be held together by the Internet." For anyone concerned about the world we are creating, A Global Ethic for Global Politics and Economics offers equal measures of informed analysis, compassionate foresight, and wise counsel. (shrink)

This succinct but illuminating book defends the free market, while criticizing a narrowly economistic understanding of man and society. Baldacchino argues that a sound economy has ethical and cultural prerequisites that are integral to its survival. Includes an introduction by Russell Kirk. _From the Introduction: _ “Any society’s moral order develops from its religion, its philosophy, its humane literature. The discipline of political economy, little understood until the latter half of the eighteenth century, is no independent creation: what economic (...) views one holds must depend upon one’s apprehension of human nature. An economic system indifferent to morality will not long endure. For proof of these theses, read with attention Baldacchino’s succinct study, the work of a sound scholar endowed with a philosophical habit of mind.”–_Russell Kirk_. (shrink)

In this paper, we report the findings from the data we collected from a survey in order to measure how common research ethics education in economics is. We have found out that (1) research ethics is taught in only a very few economics departments around the globe; (2) topics related to research ethics are not taught in courses on economics and ethics; and (3) the number of papers published in specialised peer-reviewed journals (...) on economics education is only a tiny fraction of the number of papers published in these journals. There has been no evidence in economics showing that economics departments have taken strong initiative on teaching research ethics to undergraduate and graduate students. (shrink)

Ethics of Inclusion captures fairness and social justice for all from an ethical perspective in our post-pandemic world. The book discusses inequality in Healthcare, Economics & Finance, Education, Digitalization, and the Environment, in order to envision economics of diversity and a transition to a more inclusive society. A wide-ranging approach addresses issues of inequality in access to innovations such as telemedicine and artificial intelligence, economic gains of robotics, and big data insights. A rising performance gap between (...) the finance sector and the real economy opens in the post-COVID-19 era, with system-inherent inequality, given elevated inflation levels and disparate impacts of low interest rate regimes around the globe. Education offers social transfer hubs and inclusion potential for societal advancement and international development. The transition to a greener economy is addressed in an analysis of the Green New Deal and European Green Deal including the Sustainable Finance Taxonomy. The book sets out a hopeful agenda for equality and social justice to deliver a post-pandemic Renaissance. (shrink)

This paper argues that economic rationality and ethical behavior cannot be reduced one to the other, thus casting doubt on the validity of assertions such as ‘profit is ethical’ or ‘ethics pays’. In order to express ethical dilemmas in a way which opposes economic interest with ethical concerns, we propose a model of rational behavior that combines these two irreducible dimensions in an open but not arbitrary manner. Behaviors that are neither ethical nor profitable are considered irrational . (...) However, behaviors that are profitable but unethical, and behaviors that are ethical but not profitable, are all treated as rational . Combining ethical concerns with economic interest, ethical business is in turn seen as an optimal form of rationality between venality and sacrifice. Because everyone prefers to communicate that they act ethically, ethical business remains ambiguous until some economic interest is actually sacrificed. We argue, however, that ethical business has an interest in demonstrating its consistency between communication and behavior by a transparent attitude. On the other hand, venal behaviors must remain confidential to hide the corresponding lack of consistency. This discursive approach based on transparency and confidentiality helps to further distinguish between ethical and unethical business behaviors. (shrink)

This paper argues that economic rationality and ethical behavior cannot be reduced one to the other, thus casting doubt on the validity of assertions such as ‘profit is ethical’ or ‘ethics pays’. In order to express ethical dilemmas in a way which opposes economic interest with ethical concerns, we propose a model of rational behavior that combines these two irreducible dimensions in an open but not arbitrary manner. Behaviors that are neither ethical nor profitable are considered irrational (non‐arbitrariness). (...) However, behaviors that are profitable but unethical, and behaviors that are ethical but not profitable, are all treated as rational (openness). Combining ethical concerns with economic interest, ethical business is in turn seen as an optimal form of rationality between venality and sacrifice. Because everyone prefers to communicate that they act ethically, ethical business remains ambiguous until some economic interest is actually sacrificed. We argue, however, that ethical business has an interest in demonstrating its consistency between communication and behavior by a transparent attitude. On the other hand, venal behaviors must remain confidential to hide the corresponding lack of consistency. This discursive approach based on transparency and confidentiality helps to further distinguish between ethical and unethical business behaviors. (shrink)

The Encyclical-Letter Caritas in Ventate by Pope Benedict XVI suggests to advance towards a new conceptualization of the tenuous relationship between economics and ethics, proposing a "new humanistic synthesis" Where social encyclicals have traditionally justified policy proposals by natural law and theological reasoning alone, Caritas in Ventate gives great relevance to economic arguments. The encyclical defines the framework for a new business ethics which appreciates allocative and distributive efficiency, and thus both markets and institutions as improving the (...) human condition, but locates their source and reason outside the economic sphere. It places a clear accent on the ontological connectedness of the economic and ethical dimensions of human action. It is the proper ordering of means towards the end of integral human development that allows mankind to leave a vicious circle of consumerism and enter a virtuous circle that applies the creativity fostered by markets. This vision implies a new model of business management that integrates considerations of vocation, purpose, and values at a theological level. (shrink)

This article introduces the concept of economic medicalization where non-medical problems are transformed into medical problems in order to achieve the objective of corporate shareholder wealth maximization. Following an overview of the differences in ethical norms applicable to medical ethics and business ethics, the economic medicalization of medical research practice and publication is examined in some detail. This motivates a general discussion of the problems involved in the ethical approval process for medical research that balances the interests (...) of both business and government in the market for medical products and services. (shrink)

This article revisits the "harmony doctrine" school of economics and its distinctive understanding of how ethics and economics intersect. Harmony doctrine thinkers staked out a “natural” understanding of economic phenomena that in many ways fused the classical political economy of Adam Smith with the earlier French Physiocratic School. Their metaphysically grounded interpretation was largely eclipsed by the developments of utilitarian and marginalist schools by the end of the nineteenth century. Yet harmony doctrine thinking adhered to a distinct (...) understanding of how ethical processes and outcomes play out within the economic sphere that has to date gone under examined by business ethicists. This paper outlines three characteristics of harmony doctrine views: the belief in curative forces empowered to "heal" the economic order, a dichotomous interpretation of the economic realm that distinguishes the “natural” from the “artificial,” and an overarching belief in a harmonious social order actualized by cooperative interdependencies within economic enterprises. Despite falling into obscurity in the economic discipline, all these ideas found new life in intellectual currents of organizational and political thought at the turn of the twentieth century. After surveying these historical developments, this article concludes by demonstrating how harmony doctrine thinking helpfully illuminates persisting metaphysical dimensions of contemporary business ethics. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Kantian Ethics and Economics: Autonomy, Dignity, and CharacterIvan A. BoldyrevMark D. White. Kantian Ethics and Economics: Autonomy, Dignity, and Character. Stanford, CA: Stanford University Press, 2011. Pp. xi + 270. Cloth, $55.00.This remarkable book provides a new ethical perspective for economics based on Kantian ethics of autonomy and dignity. There are two main messages in it that I find particularly important. First, (...) Mark White derives from Kant the idea of irreducible moral principles that govern the behavior of economic agents independently of welfarist and, more generally, consequentialist concerns. These principles of duty and the “incomparable worth” (21) of human dignity, as well as justice or rights, may not be economically traded off against some other motivations; hence, they simply evade economic reasoning altogether.Second, White endorses a version of libertarian Kantianism that treats people as individuals in essence (“autonomous”) and social in orientation (respecting the rights and the choices of the others). In discussing individualism, White attacks the conventional wisdom of economics and claims that preferences alone do not account for the identity of individuals [End Page 298] in space and time, although their unique characters do. Persons should be given free choice (absent in deterministic rational-choice models) and hence responsibility for their choices that incorporates the social factors in decision-making. However, White never mentions the almost insurmountable difficulties associated with fleshing out the truly individual features of a given person. Although he allows for a person’s identity and character changing over time, he does not recognize that character itself is in many respects a social construction.White criticizes paternalistic economic policies that suggest manipulating choice environments in order to follow the “true” preferences of the individuals. Instead, real consent, as satisfying both relevant preferences and principles (e.g. rights and human dignity), is, in his view, the sole criterion for justifying particular policy measures—not Pareto-efficiency or Kaldor-Hicks compensation. Economists’ obsession with efficiency leading to the misconceived notions such as “efficient level of crime” or “manageable level of terrorism” is also severely criticized.For White, the most popular formalistic version of the categorical imperative is less important than the other two—prohibiting treating other people simply as means and instituting the “Kingdom of Ends.” Formalism is reserved merely for the negative evaluation of actions and providing strict perfect duties that give clear guidance concerning what should not be done. White’s “Kantian-economic” model of decision-making incorporates perfect duties as constraints, and imperfect (positive) duties as preferences. He also stresses that for Kant, duties derived from the imperative depend on empirical knowledge, the context of decision-making, and judgment as a unique personal interpretation of the moral law. He further emphasizes the intersubjective role of Kantian morality: moral law should be universalizable to all rational persons (the “Kingdom of Ends” formula of the imperative), whereas rationality means not just following the patterns of behavior developed in the preference-oriented choice model, but rather acting on one’s beliefs and desires or choosing not to follow them, thus exhibiting genuine autonomy.The new and important contribution to the discussion is an explicit treatment of will as an inner faculty that, together with judgment, constitutes a person’s character or “self,” and helps to overcome the mere inclination to follow duty. Will is the missing link between decision and action and should be “well-trained” for bringing about true morality.The book is clearly written, and the author has upheld the interdisciplinary appeal of the topic, demonstrating an outstanding knowledge of the vast literature on ethics (both Kantian and not) and economics. White’s emphasis on the irreducibility of moral principles is absolutely relevant for current economic and political debates. However, some reservations are in order.There is an ambiguity concerning the status of his analysis. If in its positive aspect White’s recommendations for economists is to accept the Kantian vision of morality, then almost no arguments are given for this, and his modifications of the standard choice model are introduced in an ad hoc manner, just to reconcile it with the Kantian framework. Are an individual’s decisions to act on principles and to overcome mere inclinations really... (shrink)

The moral and political philosophy of Wilhelm Röpke is among the finest instances of European classical liberalism in the twentieth century, and in many occasions he stated that only a society which understands the importance of markets can be reconciled with human dignity. Röpke elaborated a political theory that focused on the harmony between moral principles and economic law. In this sense, his liberalism is unique not only because it defends private property and competition as pillars of a thriving economy, (...) but above all that it provides the preconditions of a society that can remain secure from the immorality of despotism and subsequent ethical degeneration. To that end he upheld an economic order based on voluntary cooperation as the basis for a more humane society, emphasizing the role of institutional competition and federalism. Röpke’s cultural conservatism should not therefore be misunderstood, as it is very much connected with his defense of the essential role of property. It is only in this sense that he found in liberal humanism a third way, which is not however situated halfway between the market and socialism, but which represents instead a defense of a competitive society that is aware of its own historical and cultural basis. (shrink)

We advance the thesis that the method of experimental economics can make significant contributions to normative, as opposed to descriptive, business ethics. We contend that there are two basic ways in which experimental economics may make this contribution, and we exemplify these ways by pointing to experimental support of social contract theory as rational foundation for business ethics. These two ways are: (1) adding psychological realism; and (2) testing some quasi-empirical assumptions present in normative theory. In (...) order to make good our methodological claim, we first describe the methodological rules of experimental economics, distinguishing this method from other behavioral business ethics approaches. We also contemplate the possible objection that empirical methods cannot bear on normative ethics because there is no way of bridging the gap between descriptive theory (how people behave) and normative theory (how people ought to behave). (shrink)

The current environment of business and financial corruption in Spain has increased in recent years. In order to reduce the scope of this problem, the Spanish Criminal Code has introduced codes of conduct and ethics to encourage a new culture of respecting laws for companies and employees. An Educational Innovation Group at the University of Extremadura has proposed a cross-sectional model to study ethics, in an effort to address concerns about the consequences of illegal acts in society (...) and companies. Students in Business, Finance and Accounting are required to practice ethical decision-making through court judgments in order to develop “ethical competences”. These competences are included in the European Higher Education Area and the Official University Education in Spain, specifically in the Royal Decree 1393/2007, of 29 October through cross-sectional competences within the academic programmes. The results of the study show that a high percentage of students validate this methodology as a way of improving ethical decision-making skills at University that will be applied to future business practices. (shrink)

Both intertemporal and intratemporal equity are central to the examination of policy towards climate change. However, many discussions of intertemporal issues have been marred by serious analytical errors, particularly in applying standard approaches to discounting; the errors arise, in part, from paying insufficient attention to the magnitude of potential damages, and in part from overlooking problems with market information. Some of the philosophical concepts and principles of Paper 1 are applied to the analytics and ethics of pure-time discounting and (...) infinite-horizon models, providing helpful insights into orderings of welfare streams and obligations towards future generations. Such principles give little support for the idea of discrimination by date of birth. Intratemporal issues are central to problematic and slow-moving international discussions and are the second focus of this paper. A way forward is to cast the policy issues and analyses in a way that keeps equity issues central and embeds them in the challenge of fostering the dynamic transition to the low-carbon economy in both developed and developing countries. This avoids the trap of seeing issues primarily in terms of burden-sharing and zero-sum games – that leads to inaction and the most inequitable outcome of all. (shrink)

Metz holds that we can use African communal ethics to constitute global economic practices such as appropriation, production, distribution and consumption in such a way that promotes harmonious relations. In this article, I will show that Metz’s reformist approach to constituting the global economic practices is problematic as it fails to deal with the fundamental problem that pertains to a racialised world order that is structurally configured by coloniality of being. I will show that reformist approaches such as (...) Metz’s use of African communal ethics to constitute global economic practices in a way that promotes harmonious relations are undesirable attempts that are opposed and curtailed by a structural racialised logic/ontology of the world that governs and supervises the evolution of the world economic structures and practices in a way which undermines harmonious relations and in a way which causes economic marginalisation and impoverishment of historically disadvantaged indigenous Africans. (shrink)

The average annual profits before fees of the $10 billion plus Renaissance Technologies’ hybrid Medallion “Leveraged, High Frequency, Artificial Intelligence ” trading hedge fund between 1988 and 2019 were about 66 percent. Total trading profits during this period were over $100 billion. The fund has never had a losing year. The fund is not open to the general public. First, distinctions among, in more or less historical order, the traditional market-maker trading model, the hedge fund trading model, the artificial (...) intelligence trading model, and the hybrid LHFAI trading model are discussed. Second, the micro components of the LHFAI trading model are explained in the context of Renaissance Technologies’ Medallion Fund. Third, key positive contributions of the model with respect to profitability, low annual volatility, market liquidity, and intellectual property development; negative ethical issues concerning exclusive access, tax fairness, financial transparency, shared responsibility for losses and systemic risk, and short vs. long-term capital allocation are discussed. Potential reforms that retain the positives, reduce the negatives, and that could positively transform the model are discussed. Fourth, potential impacts that the potential reforms might have on the macro LHFAI form of finance capitalism and the larger finance capitalism political-economic system are considered. Fifth, conclusions are offered and discussed. (shrink)

The purpose of this article is to examine the relationship between philosophy (considered as an expression of fundamental values) and development, this here particularly understood in its economic sense. The author starts with an exploration of the meaning of development and then goes on to evaluate the views and perspectives that tend to argue against philosophy in its broadest sense (that is considered simply as a worldview or as a system of values) occupying a distinct and significant role in development. (...) In order to demonstrate this important point, the author explores what he considers to be the impact of the traditional African ethical outlook and values in relation to the economic activities and the process of development in contemporary Africa. O objectivo deste artigo é analisar a relação entre a filosofia (considerada como expressão de valores filosóficos fundamentais) e o desenvolvimento, sendo este especialmente entendido no sentido económico. O autor começa por explorar o significado de desenvolvimento e, em seguida, continua com a avaliação das visões e perspectivas que tendem a argumentar contra a filosofia no seu sentido mais alargado (isto é, a filosofia considerada simplesmente como visão do mundo ou como um sistema de valores) que ocupam um papel distinto e significativo no desenvolvimento, sendo esta exploração e avaliação efectuadas no sentido de argumentar que a filosofia tem, de facto, um papel muito distinto e significativo a desempenhar no processo de desenvolvimento, mesmo no sentido económico do termo. Para demonstrar este importante aspecto, o autor explora o que ele considera ser o impacto da perspectiva ética e dos valores tradicionais africanos em relação com as actividades económicas e o processo de desenvolvimento na África contemporânea. (shrink)

Commonly accepted dictates of morality clash with the a priori laws of free economic competition. These divergent directives — that stem from the essence of their sources and cannot be changed or negated without altering their sources — contradict each other and so set up conflicts of the most fundamental kind in men's psyches (or souls). In addition, this clash of moralities implies a most serious question respecting real freedom under a system of so-called free-enterprise. For, if in order (...) to thrive, we must perform actions that at the same time violate our own moral self respect, we cannot call ourselves free. (shrink)

The name "School of Salamanca" refers to a group of theologians and natural law philosophers who taught in the University of Salamanca, following the inspiration of the great Thomist Francisco de Vitoria. It turns out that the Scholastics were not simply medieval, but began in the 13th century and expanded through the 16th and 17th centuries; and they developed some original theories about economics and international law.Why should a few men mainly interested in theology and ethics apply themselves (...) in analyzing issues so far from their worries? The answer leads us to a revision of the morality rules, due to the new problems in business ethics. Thus, for example, the appearance of inflation made them have doubts about the merchant's morality. In order to solve this and other problems, they began to analyze the new and suspicious economic activity. As a result of their observations about ethical issues they discovered some advanced theories for the history of economic thought, such as the early formulation of the quantity theory of money. (shrink)

Exploring recent controversies over the role of ethics in economics, The Boundaries of Technique encourages scholars and students to discover and debate the ways in which economics is insulated from ethics, and the ways in which it is dependent upon it. Ultimately, by bringing readers to a deeper awareness of the intrinsic involvement of the individual and the responsibility of moral choice, Yuengert makes an invaluable contriubtion to the study and practice of economics.

Ethics is being asked to respond to the globalization of the economy, and among the various responses one can see the emergence of inter-religious approaches including lay groups. This article examines certain of these concrete attempts to integrate ethics, spirituality and economics, and problematizes some of the theoretical underpinnings of these activities, specifically the question of beliefs.In January, 1998, two inter-religious and interdisciplinary organizations — Avicenne and the World Conference on Religion and Peace — participated for the (...) first time in the European Commission's conference on the future of Europe's economic and social order. It was recognized at this meeting that inter-religious dialogue constituted a paradigmatic example for the construction of a European society that must integrate different cultures. But paradigmatic does not mean it actually exists, for the inter-religious dynamic is still hesitating between globalization and integrationism. Nevertheless, religious plurality is apparent in the economy. The IMF recently hosted representatives of different religions, surpassing the framework of Christianity. In France, the University of Paris IX has planned a series of lectures on “Morality, Spirituality and Business Life”. Before looking at the theoretical questions connected with the emergence of a planetary, inter-religious ethics, let us come back to the question of the Christian religions and the social and economic order. I will restrict myself to mentioning some problematic points in order to defend the necessity of an inter-religious, interdisciplinary approach.Among the positions adopted by the churches at the January, 1998 conference, three points bear some examination: the dignity of labour and the community as specifically Christian values, and Europe constructed on the base of Christian values. (shrink)

A set of basic static predicates, 'in itself, 'existing through itself, 'free', and others are taken to be (at least) extensionally equivalent, and some consequences are drawn in Parts A and? of the paper. Part C introduces adequate causation and adequate conceiving as extensionally equivalent. The dynamism or activism of Spinoza is reflected in the reconstruction by equating action with causing, passion (passive emotion) with being caused. The relation between conceiving (understanding) and causing is narrowed down by introducing grasping (λ (...) μβ?νω) as a basic epistemological term. Part D, 'The road to freedom through active emotion', introduces a system of grading with respect to the distinctions introduced in the foregoing, including 'being in itself, 'freedom', etc. Active emotions are seen to represent transitions to a higher degree of freedom, the stronger and more active ones being the more conducive to rapid increase in degree of freedom. Elementary parts of the calculus of predicates are used in order to facilitate the survey of conceptual relations and to prove some theorems. (shrink)

Self-driving vehicles offer great potential to improve efficiency on roads, reduce traffic accidents, increase productivity, and minimise our environmental impact in the process. However, they have also seen resistance from different groups claiming that they are unsafe, pose a risk of being hacked, will threaten jobs, and increase environmental pollution from increased driving as a result of their convenience. In order to reap the benefits of SDVs, while avoiding some of the many pitfalls, it is important to effectively determine (...) what challenges we will face in the future and what steps need to be taken now to avoid them. The approach taken in this paper is the construction of a likely future, through the process of a policy scenario methodology, if we continue certain trajectories over the coming years. The purpose of this is to articulate issues we currently face and the construction of a foresight analysis of how these may develop in the next 6 years. It will highlight many of the key facilitators and inhibitors behind this change and the societal impacts caused as a result. This paper will synthesise the wide range of ethical, legal, social and economic impacts that may result from SDV use and implementation by 2025, such as issues of autonomy, privacy, liability, security, data protection, and safety. It will conclude with providing steps that we need to take to avoid these pitfalls, while ensuring we reap the benefits that SDVs bring. (shrink)

Economics is often believed to be a `value-free' discipline, and even an `a-moral' one. My aim is to demonstrate that homo œconomicus can recover his ethical nature if the philosophical roots of contemporary economics are laid bare. This, however, requires us to look for an alternative foundation for the idea of `social order,' a foundation which economics is ill-equipped to provide because of its exclusive focus on calculative rationality. But a new ethical perspective on homo œconomicus (...) and on the manner in which he chooses his actions is possible. My aim here is to make this new perspective explicit.Two claims lie at the heart of this paper. The first claim is that economics as practised nowadays — that is, as a discipline concerned with the analysis of the interactions between individual decisions and the collective effects of these interactions — is a particular form of metaphysics, based on a particular articulation between self-centredness and other-centredness. The second claim is that, unbeknownst to the vast majority of economists, the basic principle of individual optimization contains the seed of a radical reformulation of what the emergence of `social order' is all about. More specifically, economics will be claimed to be a specific metaphysical discipline based on the monadological worldview inherited from Leibniz and re-arranged to fit the empiricist bias of 18th-century thinkers, and the principle of individual optimization will be claimed to be compatible with a very different metaphysical view of the human subject, a view which `turns subjectivity inside out', so to speak, and treats optimizing calculation as a response rather than as an initiative.The first claim is rather general, and not completely new — it has been hinted at, for example, by Jon Elster in an early book written in French, but it has received precious little attention among economists so far, with the result that economics has become increasingly blind to the philosophical roots of its most fundamental views on individual decision and on social order. The second claim applies to economics and homo œconomicus a general suggestion coming from Alain Renaut, that we ought to make good use of the accusations of incoherence voiced against the monadological scheme in order to re-think the way in which human subjectivity works. Renaut, however, remains at the level of the history of the philosophical concept of subjectivity. Although he does, in passing, make some mention of possible implications for the social sciences, he never goes into the full analysis of what the critique of monadological metaphysics implies for modern theories of society, and for economics in particular. One of my main goals here is to fill this gap.Let me now be more specific about the steps of my analysis. Defending my two claims will require, first of all, a rigorous understanding of the basic methodological stance adopted by economics, namely the idea that social order `emanates' from a bunch of self-centred subjectivities making separate optimizing decisions. Accordingly, in Section 2, I will trace out the analogy that exists between Leibnizian monadology and modern-day economics. The aim there will be to show that economics, unwittingly but for nevertheless deep ethical reasons, has remained `stuck' in a very specific metaphysical position which virtually no contemporary philosophy of subjectivity any longer acknowledges. Section 3, then, will show how the combination of monadology and empiricism which still prevails in contemporary economics can be overcome by entering an altogether distinct philosophical domain characterized by the primacy of Other over Self.While this alternative philosophical stance has experienced a surge of interest in recent decades, it has left the social sciences, and particularly economics, completely untouched. The reason is, I will claim, that this strand of philosophy adopts a form of methodological altruism which stands in contrast both to the methodological individualism of economics and to the methodological holism of various strands of post-Durkheimian sociology. In Section 4, then, I analyze some of the far-reaching consequences for economics which would flow from taking into account `non-I' motives which are not `We' motives, i.e., motives for action which are neither mere holist pastings onto individualism nor mere individualist mitigations of holism.The principle of choice of action through individual optimization will appear as the `hinge' between two worlds: although initially anchored within a worldview where social coexistence is a by-product of individual calculations, the idea of optimization will be seen to be compatible with a very different, and indeed almost reversed worldview, one where individual calculations emerge as by-products of social coexistence — the term `social' being itself radically re-thought in a non-holistic direction.The aim of my analysis, ultimately, is to formulate a challenge for contemporary economics and its implicit view of the interaction between individual and society: Can the combination of monadological and empiricist thinking so strongly ingrained in economics be overcome in the direction of a radically `other-oriented' view of the human subject? Many economists will doubtless believe it cannot; however, they will now, at least, have to explain why they hold to the older view and hence they will have to uncover their often hidden ethical and metaphysical presuppositions. I view this not as an undue disturbance or as mere conceptual hair-splitting, but as a timely opportunity to clarify some deep philosophical issues which haunt economics. (shrink)

In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate governance needs to be aligned to public and supra-national governance. In order to achieve this, a hierarchically layered set of ‘agencies’, needs to be diagnosed and the issue of incentive alignment addressed. Enlightened self-interest, pluralism and diversity, (...) as well as a representative supra-national organisation for world-wide economic sustainability can serve as a new, more ‘ethically correct’ governance for economic sustainability, but not a panacea. (shrink)