This book examines the effects of the market mechanism on economies and societies. It argues that perfect competition has a tendency to promote adulteration of products and a general deterioration in quality. It also contends that it is very difficult for competitive firms to behave in socially desirable ways - being kind to the environment, contributing to worthy social programmes, handling redundancy humanely. The book goes on to propose ways in which these flaws might be remedied without subverting the market (...) mechanism. (shrink)

This article offers proposed guidelines intended to protect the public interest in relationship to the advocated social responsibilities of successful entrepreneurs. The author argues that the most effective approach, then, is not preaching about obligations but, rather, establishing financial incentives for doing well by doing good. One example is the U.S. patent system. Another is a redesigned tax system that uses imposts to make socially damaging activities expensive, while reducing the financial burden on virtuous behavior.