ABSTRACT:Some business ethicists view agency theory as a cautionary tale—a proof that it is impossible to carry out successful economic interactions in the absence of ethical behaviour. The cautionary-tale view presents a nuanced normative characterisation of agency, but itsunilateralfocus betrays a limited understanding of the structure of social interaction. This article moves beyond unilateralism by presenting a descriptive and normative argument for abilateralcautionary-tale view. Specifically, we discuss hat swaps and role dualism in asymmetric-information principal-agent relationships and argue that the norm (...) of reciprocity can function as a moral solution to agency risks in adverse-selection and moral-hazard problems. Our bilateral cautionary-tale formulation extends the normative boundaries of agency theory, while leaving the fundamental economic assumptions of agency theory intact. (shrink)

L'histoire de la philosophie est marquée par de nombreuses tentatives pour soustraire la morale aux préceptes dictés par une croyance religieuse aveugle, l'arracher aux limbes des émotions, des intérêts égoïstes, des «nobles» sentiments ou des passions troubles de la volonté de puissance, la sortir du terrain où se disputent âprement les évidences intuitives, l'inscrire dans le règne de la raison. Il s'agit de tentatives en vue de fonder les obligations morales, l'éthique tout court, de manière rationnelle. Or, ces démarches peuvent (...) emprunter des chemins variables selon que la rationalité de l'action se trouve conceptualisée dans la perspective des intérêts et préférences raisonnés, ou qu'elle se comprend à partir de la raison pratique dans sa pureté. (shrink)

The use of agency theory remains highly controversial among business ethicists. While some regard it as an essential tool for analyzing and understanding the recent spate of corporate ethics scandals, others argue that these scandals might not even have occurred had it not been for the widespread teaching of agency theory in business schools. This paper presents a qualified defense of agency theory against these charges, first by identifying the theoretical commitments that are essential to the theory (in order to (...) distinguish between agency theory itself and certain incorrect interpretations that have been widely promulgated), and second, by specifying more clearly the different ways that agency theory can be used to analyze relations within the firm. The recommendation that follows from this analysis is that agency theory be used as a critical-diagnostic tool, to identify the points at which both firms and markets will be vulnerable to breakdown in the absence of moral constraint. (shrink)

Several recent commentators have suggested that for fully rational agents who find themselves in iterated prisoner's dilemmas of indefinite length, co-operation is the rational strategy. Their argument is that these fully rational agents can be taught, through the co-operative actions of other agents, to bypass the dominant move of noncooperation and co-operate instead. The proponents of the “teaching strategy” seem to have ignored the compelling argument of Jordan Howard Sobel. While the teaching argument may work for agents who are less (...) than purely rational, Sobel has pointed out that hyperrational utility maximizers cannot be taught; they reason deductively, not inductively, as the “teaching argument” requires. (shrink)

This study seeks to critically explore the link between sovereignty, violence and war in Giorgio Agamben’s Homo Sacer series and Thomas Hobbes’s Leviathan. From a brief rereading of Leviathan’s main arguments that explicitly revolves around the Aristotelian distinction between actuality/ potentiality, it will conclude that Hobbesian pre-contractual violence is primarily based on what Hobbes terms “anticipatory reason” and the problem of future contingency. Relying on Foucauldian insights, it will be emphasized that the assumption of certain potentialities suffices in leading to (...) Hobbes’s well-known conclusion that the state of nature is a “condition of Warre.” In a second step, this study considers some of Agamben’s arguments to account for how pre-contractual violence as envisioned by Hobbes cannot be rendered impotent through the integration of a sovereign. In specific, Agamben’s claims shed light on an irreducible, inextricable entwining between the state of nature and the state of law as “Siamese twins” (Virno). On a meta-level, Agamben thus implicitly shows how the “Hobbesian problem” cannot be merely reduced to a “problem of order” (Parsons). With regard to the current functioning of the stratagems of financial markets and the mechanisms of future-colonization underpinning global politics, this study finally argues that Hobbes ought to be reevaluated in particular regarding the problem of the future in his account. Partly responding to Agamben’s critical investigations, I suggest that a careful exploration of what will be coined “the prospects of an actualization of the potentiality not-to-be” might serve as a first theoretical step towards a productive form of criticism. (shrink)