In The Theory of Moral Sentiments (TMS) Adam Smith draws on the Stoic idea of a Providence that uses everything for the good of the whole. The process is often painful, so the Stoic ethic insisted on conscious cooperation. Stoic ideas contributed to the rise of science and enjoyed wide popularity in Smith's England. Smith was more influenced by the Stoicism of his professors than by the Epicureanism of Hume. In TMS, Marcus Aurelius's "helmsman" becomes the "impartial spectator," who judges (...) actions in terms of the way they are seen by others. This is the key to justice, without which society collapses. Business school students should be taught that Smith's "invisible hand" is best understood as a universal rationality that uses just actions for the benefit of the whole. (shrink)

This paper argues that economics, over the past 200 years, has become steadily more anti-philosophical and that there are three stages in the development of economic thought. Adam Smith intended economics to be a descriptive social science, rooted in an understanding of the moral and psychological processes of an individual’s decision-making and its connection to society in general. Yet, immediately after Smith’s death, economists made a clean cut and invented a totally new discipline: they switched towards a physicalist understanding of (...) human nature. Humans, like atoms, follow a natural law: they are driven by an emotion (defined as a non-emotion, rationality), namely selfishness. Thus economics became a ‘natural’ science. In the 20th century, the second reinterpretation removed all traces of humanity from the study of economics and declared economics to be a formal science like mathematics and logics. The actor in Phase 3 economics is homo economicus syntheticus, a postulate whose only connection to real humanity is the word homo. The paper asks what the results of this dramatic relocation are and why Phase 3 economics still claims descent from Smithian economics, despite the massive differences. (shrink)

In both the public and the business world, in academe as well as in practice, the ideas of Adam Smith are regarded as the bedrock of modern economics. When present economic conditions and management practices are criticised, Adam Smith is referred to by defenders and detractors of the current status quo alike. Smith, it is believed, defined the essential terms of reference of these debates, such as the rational pursuit of self-interest on part of the individual and the resultant optimal (...) allocation of goods in free markets thanks to the workings of an “invisible hand.” In this article, we question whether this standard view of Smith, the economist, is tenable. We provide an extensive review of the extant secondary literature from economists, business ethicists, and philosophers, comparing their assessments to crucial elements of Smith’s theoretical system. As a result, we show that Smith, far from being an advocate of a value-free or even value-averse conception of economic transactions, stood for a virtue-based and values-oriented model of business. Accordingly, we argue current management education and the pedagogy of business ethics ought to be changed, and certain strategic conclusions drawn for business practice. (shrink)

The contemporary revival of virtue ethics has focused primarily on retrieving central moral commitments of Aristotle, Thomas Aquinas, and the Neoplatonist traditions. Christian virtue ethicists would do well to expand this retrieval further to include the writings of the Roman Stoics. This essay argues that the ethics of Jonathan Edwards exemplifies major Stoic themes and explores three noteworthy points of intersection between Stoic ethics and Edwards's thought: a conception of virtue as consent to a benevolent providence, the identification of virtue (...) as a singular and transformative good, and an account of moral formation as simultaneously self-directed and received. Common ground between Edwards and the Stoics illustrates the value of recognizing Stoic moral thought as a philosophical framework that can enhance and undergird Christian ethicists' understandings of moral development and the nature of virtue. (shrink)

ABSTRACTCommerce changes the production of wealth in a society as well as its ethics. What is appropriate in a non-commercial society is not necessarily appropriate in a commercial one. Adam Smith criticizes Stoic self-command in commercial societies, rather than embracing it, as is often suggested. He argues that Stoicism, with its promotion of indifference to passions, is an ethic appropriate for savages. Savages live in hard conditions where expressing emotions is detrimental and reprehensible. In contrast, the ease of life brought (...) about by commerce fosters the appropriate expressions and sharing of emotions. Imposing Stoicism on a commercial society is therefore imposing an ethic for savages onto a refined society – something to abhor. Smith’s rejection of Stoicism in commercial societies can thus be seen as a defence of commerce. (shrink)

In a post Cold-War world riven with ‘minor’ conflicts, and a West anxious about the intermittent threat of terrorist attack, human equality and sodality require urgent review. Among interesting proposals for a theoretical foundation to human equality is Martha Nussbaum’s call for a revived, modern version of Stoicism to teach indifference to race and a neighbourly goodwill. Yet in her concern to avoid ‘teleologies’ Nussbaum denatures Stoicism by disconnecting it from its transcendent foundations. A problem for the modern world is (...) to maintain the authority of states, with their capacity to produce relief for the poor and oppressed along with their capacity to dominate, while having them absorb the ideals of cosmopolitanism into their own policyformation. It is incumbent on the democratic state, the progenitor of the cosmopolitanism of both Cynicism and Stoicism, to promote the ideals of human dignity and equality. Nussbaum’s Stoicism scarcely helps, but there are globalizing organizations, such as the United Nations and its agencies, and globalized religious organizations, as advanced by Hans Küng, which may supply the institutional foundation. (shrink)