Examines Hegel’s unique understanding and assessment of capitalism as an economic, social, and cultural phenomenon.

Epistemic arguments play a significant role in the foundations of market liberalism as exemplified, in particular, by the work of F. A. Hayek. Competition in free markets is claimed to be the most effective device both to utilize the knowledge dispersed throughout society as well as create new knowledge through innovation competition. The fast pace with which new economic opportunities are discovered and costs are reduced is considered proof of the benefits of free markets to the common good. However, with (...) its inherently unpredictable consequences, innovation competition is actually ambiguous in this respect. This feature raises questions over the stringency of market liberal pleas that oppose quests for redistribution and environmental concerns in an absolute fashion. (shrink)

A natural resource is not given, but depends on human knowledge for its exploitation. Thus a ‘unit of resource’ is, to a significant degree, a ‘unit of meaning’, and education is potentially important not only for the use of resources but also for their creation. The paper draws on poststructuralism to confirm the intuition that it would be misleading to conceive of ‘units’ of meaning. However, it is commonly acceptable to conceive of ‘units’ of resource, as in much discussion around (...) sustainability; but, if the latter concept is suspect, then so is the former. The error seems to arise from the assumption of identifiable points in space-time, already problematised by quantum mechanics and poststructuralism. Conceiving of ‘now’ as a moving in and with time, rather than as a point in time, human survival is construed as an ongoing process of meaning-making constrained though not determined by the carrying capacity of the planet. The Second Nature conception of John McDowell is critiqued with respect to this. (shrink)

In the ‘Introduction’ to Capitalism and Freedom, Friedman's stated intentions are to: establish the role of competitive capitalism as a system of economic freedom and a necessary condition for political freedom; indicate the proper role of government in a free society; and return the term ‘liberal’ ‘… to its original sense – as the doctrines pertaining to a free man’. In fact, Friedman accomplishes none of these things. This essay has three distinct, though related, objectives: first, to compare Friedman's position (...) with the liberal alternative; second, to show why Friedman's position is more properly regarded as libertarian than liberal; and third, to assess the quality of Friedman's argument in its own right. My purpose is to demonstrate that Friedman overlooks the important liberal insight that the unrestricted accumulation of private propety may limit rather than promote individual freedom. This omission is crucial. Not only does it divorce Friedman's conception from liberalism, it also vitiates his case for economic freedom as a necessary condition for political freedom. (shrink)

Coercion is by its very nature hostile to the individual subjected to it. At the same time, it often is a necessary evil: political life cannot function without at least some instances of coercion. Hence, it is not surprising that coercion has been the topic of heated philosophical debate for many decades. Though numerous accounts have been put forth in the literature, relatively little attention has been paid to the question what exactly being subjected to coercion does to an individual (...) that makes it so hostile to his person. This paper develops an analysis of the subjective aspect of coercion whereby this hostility is explained. It is argued that coercion is not just a matter of interference with one's agency, but also affects one's morality. Because coercion is a form of subjugation it does more than merely limit one's freedom, it constitutes an affront to one's dignity as well. A new account of coercion is developed that pays particular attention to the subjectivity inherent in coercion. This account takes a middle ground in the ongoing debate between advocates of moralised and non-moralised conceptualisations of coercion. The paper closes by applying this account to two prominent issues in the literature on coercion: the use of coercion claims in attempts to avoid being held responsible for one's actions, and the coercíveness of the law. (shrink)

The Irish Republic's economic success story has been simultaneously regarded as antithetical to and indicative of neoliberal hegemony. The question of the neoliberal pedigree of the Irish case is explored here from the perspective of mediatized representations of political economy. The paper's argument is advanced in three distinct stages. First, it outlines a theoretical and methodological rationale for the analysis itself. Second, it formulates a summary account of neoliberalism as discourse and ideology, introducing a key analytical distinction between ‘transparent’ and (...) ‘euphemized’ neoliberal discourses. Third, it presents an empirical overview of how neoliberal assumptions are articulated through mediatized representations of political economy. The article shows how the ‘Celtic Tiger’ can be understood as a case of neoliberal hegemony, as long as it is recognised that neoliberalism is hegemonically constituted through a plurality of discursive forms and rhetorical strategies. In addition, the paper highlights the constitutive role of media representation, especially the media rhetoric of Irish political leaders, in the production and reproduction of an Irish neoliberalism. (shrink)

European constitutional traditions share a commitment to freedom of conscience and religion, but differ on their interpretation of whether such freedoms do or do not require a clear cut separation of state and church. Weiler has advocated that the writing of a Constitution for the European Union is a very apt moment to reconsider the conceptualization of freedom of conscience and religion. On constitutional and historical grounds, he has advocated that a reference to Christian values should be made in the (...) preamble of the European fundamental law, and that this will be the alternative most respectful to the pluralistic national solutions, ranging from republican non-confessionality to the establishment of an official church. But contrary to what Weiler argues, the drafting of the constitution of the European Union is not bound by the present shape of European constitutional traditions; moreover, it is hard to conclude that the present common constitutional traditions require an explicit reference to Christianity to be included in the text. Furthermore, the claim that the individual and collective identities of Europeans are unavoidably shaped by Christian values is only tenable if we uphold a rather simplistic relation between history, memory, and identity. Finally, once one moves from law and history to practical reasoning, one finds that there are good substantive reasons why our collective identity should not contain reference to Christian values. (shrink)

This article examines the question of private coercion in market societies, arguing for an unconditional basic income guarantee from a classical liberal viewpoint. It proposes three main arguments. First, classical liberals view the purpose of government to be the reduction of coercion, both public and private. Second, a proper understanding of the nature of coercion indicates that parties subject to certain types of hardship are being coerced. Third, where the total amount of coercion is reduced by eliminating the hardship, the (...) classical liberal state must do so to fulfill its purpose. Hence, this article argues that if the total amount of coercion in society can be reduced by the state employing the amount of coercion necessary to maintain an unconditional basic income guarantee, then the classical liberal state is obligated to maintain such a guarantee by its underlying justification. (shrink)

En este artículo se ofrece una presentación de los aspectos centrales de la concepción del hombre de Hayek y una breve refl exión sobre ella. Primero, se expone su concepción de lo que es el hombre: un ser individualista, cuya evolución histórica conduce a la "sociedad extendida", y creador de normas y tradiciones. A continuación, se caracterizan sus principales dimensiones: la ética es heterónoma y coincide con las reglas sociales; su razón es limitada; la libertad es individual, negativa, y se (...) limita a la libertad económica y, fi nalmente, sostiene que los hombres son naturalmente desiguales. We explain the main aspects of Hayek's conception of man and its intellectual background. The Austrian thinker developed this conception on two levels. On the one hand, he proffers an idea of what man is, namely, an individualist, who evolves from "tribal society" to "extended society", and a creator of norms and traditions. On the other had, he tells how man is, he spells out his chief characters: man's ethics is heteronomous and immanent to the reproduction of society; man's intelligence is limited and his central value is freedom, economically understood. Finally, Hayek maintains that me are naturally unequal. (shrink)

In spite of the important discoveries made by Adam Smith and later by the economists of the Austrian School, Friedrich Hayek remained intellectually challenged by the miracle of the price mechanism. As it turned out there was still some pioneering to do in describing the price mechanism. This became clear when Hayek identified the dispersal of information relevant to exchange transactions as the central issue of economic study. In the context of his distinction between competition as a state of things (...) and as a process the price mechanism manifests itself as a powerful integrator of information which is at first sight hopelessly dispersed in modern society. In 1945 he pointed out another intellectual challenge which the miracle of the price mechanism poses: How could such a marvelous functionality come into existence? “I am convinced that if it [the price mechanism] were the result of deliberate human design, and if the people guided by the price changes understood that their decisions have significance far beyond their immediate aim, this mechanism would have been acclaimed as one of the greatest triumphs of the human mind”. It is precisely because the free determination of prices is obviously not an invention, and because actors on the market in general do not realize that their decisions are at once also signals for the information-processing system that the market is, that in general this market order is not highly estimated. The market order is nevertheless the best illustration of the dual principle that the most beautiful forms of complex functionality are not deliberately created and are not deliberately maintained. (shrink)

Postmodernism is often characterized, among other things, as the belief in the unattainability of objective truth and as a rejection of teleological and reductionist, or essentialist, forms of thought. For instance, in his provocative book The Rhetoric of Economics, Donald McCloskey sketches the implications for economic methodology of Richard Rorty's rejection of the modernist quest for Truth, as represented by various rationalist and empiricist epistemologies. McCloskey describes modernist methodology as displaying a desire to predict and control, a search for objective–;which (...) often means measurable–;knowledge, and an attempt to develop a value-free inquiry, among other characteristics. This “methodological correctness,” McCloske suggests, is discredited by the postmodern dissatisfaction with traditional epistemology. Thus, in place of the modernist belief in a rule-guided path to truth, he advocates a “free market” approach to knowledge, in which participants in the variety of theoretical conversations agree to be earnest and listen politely to one another. (shrink)

This paper compares Joseph Heath’s critique of the just deserts rationale for markets with an earlier critique due to Frank Knight, Milton Friedman, and Friedrich Hayek. Heath shares their emphasis upon the role of luck in prices based on supply and demand. Yet he avoids their claim that the inheritance of human capital is on a moral par with the inheritance of ordinary capital, as a basis for unequal shares of the social product. Heath prefers to argue that markets do (...) not tend to reward talent as such. The paper raises some doubts about this factual claim, and argues that sweeping the issue of talent under the rug threatens to make our theory of justice less egalitarian than it would otherwise be. The paper also addresses the objection that claims of unfairness based on the arbitrariness of the distribution of innate abilities will undermine self-respect. (shrink)

The Politics of Orientation provides the first substantial exploration of a surprising theoretical kinship and its rich political implications, between Gilles Deleuze's philosophy and the sociological systems theory of Niklas Luhmann. Through their shared theories of sense, Hannah Richter draws out how the works of Luhmann and Deleuze complement each other in creating worlds where chaos is the norm and order the unlikely and yet remarkably stable exception. From the encounter between Deleuze and Luhmann, Richter develops a novel take on (...) postfoundational ontology where subjects and societies unfold in self-productive relations of sense against a background of complexity. The Politics of Orientation breaks and rebuilds theoretical alliances by reading core concepts and thinkers of Continental Philosophy, from Leibniz to Whitehead and Marx, through this encounter. Most importantly, the book puts Luhmann and Deleuze to work to offer urgently needed insight into the rise of post-truth populism. In our complex democratic societies, Richter argues, orientation against complexity has become the ground of political power, privileging the simplistic narratives of the populist right. (shrink)

It is commonly claimed that rule consequentialism (utilitarianism) collapses into act consequentialism, because sometimes there are benefits from breaking the rules. I suggest this argument is less powerful than has been believed. The argument requires a commitment to a very particular (usually implicit) account of feasibility and constraints. It requires the presupposition that thinking of rules as the relevant constraint is incorrect. Supposedly we should look at a smaller unit of choice—the single act—as the relevant choice variable. But once we (...) see feasibility as a matter of degree, there is no obvious cut-off point for how broadly we should think about the constraints on our choices. Treating “a bundle of choices” as a relevant free variable is no less defensible than treating “a single act” as the relevant free variable. Rule utilitarianism, rule consequentialism, and other rules-based approaches are stronger than their current reputation. (shrink)

Liberalism generally holds that legitimate political power is limited and is to be impartially exercised, only for the public good. Liberals accordingly assign political priority to maintaining certain basic liberties and equality of opportunities; they advocate an essential role for markets in economic activity, and they recognize government's crucial role in correcting market breakdowns and providing public goods. Classical liberalism and what I call “the high liberal tradition” are two main branches of liberalism. Classical liberalism evolved from the works of (...) Adam Smith and the classical utilitarian economists; its major 20th century representatives include Friedrich Hayek and Milton Friedman. The high liberal tradition developed from John Stuart Mill's works, and its major philosophical representatives in the 20th century are John Dewey and, later, John Rawls. This paper discusses the main distinguishing features of the classical and the high liberal traditions and their respective positions regarding capitalism as an economic and social system. Classical liberals, unlike high liberals, regard economic liberties and rights of private property in productive resources to be nearly as important as basic liberties. They conceive of equality of opportunity in more formal terms, and regard capitalist markets and the price system as essential not only to the allocation of production resources, but also as the fundamental criterion for the just distribution of income, wealth, and economic powers. High liberals, by contrast, regard the economic liberties as subordinate to the exercise of personal and civic liberties. They are prepared to regulate and restrict economic liberties to achieve greater equality of opportunities, reduce inequalities of economic powers, and promote a broader conception of the public good. And while high liberals endorse markets and the price system as essential to allocation of productive resources, they do not regard markets as the fundamental criterion for assessing just distributions of income, wealth, and economic powers and positions of responsibility. The paper concludes with some reflections upon the essential role that dissimilar conceptions of persons and society play in grounding the different positions on economic justice that classical and high liberals advocate. (shrink)

Some people may think that libertarianism and meritocracy have much in common; that the libertarian's ideal world looks like the meritocrat's ideal world; and that the public policies guiding us to each are one and the same. This is wrong in all respects. In this essay I explain why. -/- After providing an overview of meritocratic justice, I argue that meritocracy is a more compelling theory of distributive justice than libertarianism. Meritocracy better protects the core value of personal responsibility; incorporates (...) efficiency-enhancing regulation which libertarianism cannot; provides more positive liberty; and solves salient, real-world debates about distributive justice. (shrink)

Epistemic questions have become an important area of debate within democratic theory. Epistemic democrats have revived epistemic justification of democracy, while social scientific research has speared a significant debate on voter knowledge. An area which has received less attention, however, is the epistemic case for markets. Market advocates have developed a number of epistemic critiques of democracy which suggest that most goods are better provided by markets than democratic institutions. Despite representing important challenges to democracy, these critiques have gone without (...) reply as democratic theorists have tended to exclude markets from consideration. This article responds to these critiques and argues that there are good epistemic grounds for granting a much greater role to democracy than its market critics have claimed. It argues that there is a broad range of goods, including important ethical goods, which are better provided by democracy than markets due to the particular epistemic burdens they create. (shrink)

This paper gives an account of the debate between F.A. Hayek and J.M. Keynes in the 1930s written for the general public. The purpose of this is twofold. First, to provide the general reader with a narrative of what happened, … More ›.

Principles of distributive justice are normative principles designed to guide the allocation of the benefits and burdens of economic activity.

The legacy of George W. Bush will probably be associated with the President’s infallibly certain style of visionary leadership and his specific vision of a ‘Freedom Agenda’. According to this vision, the United States must spread democracy to all people who desire liberty and vanquish those tyrants and terrorists who despise it. Freedom is universally valued, and the United States is everywhere perceived as freedom’s protector and purveyor. So, the mission of the Freedom Agenda is to guard existing freedoms as (...) well as spread the democratic political system to those countries lacking comparable freedoms. Recent analyses of the Bush Freedom Agenda examine its roots in realist foreign policy and neoconservative political thought. In this paper, I take a different approach, connecting the Freedom Agenda to the ideas of two philosophers: (i) Isaiah Berlin’s notion of positive-negative liberty and (ii) John Dewey’s concept of freedom as a function of culture. My central claim is that when compared with the ideas of Berlin and Dewey, the Freedom Agenda is a faulty construct, both conceptually and practically, for understanding America’s role in global affairs. The Freedom Agenda proves to be neither conservative nor universal. Nevertheless, it constitutes an essential element of George W. Bush’s legacy, a vision of American purpose in a threatening and divisive world. (shrink)

In this article I aim to counter Jason Brennan’s principled objection to the Representativeness Argument for compulsory voting, and to criticize the case in favour of voting lotteries, on which this challenge is predicated. In brief, Brennan claims that compulsory voting should be rejected because there is an alternative system, i.e. a voting lottery, which is able to ensure demographic proportionality in electoral turnouts without diminishing the freedom of citizens. But even on the most favourable conception of freedom which the (...) argument can employ, voting lotteries raise a number of serious concerns in respect to this value. Furthermore, while comparing voting lotteries and compulsory voting on the basis of freedom cannot provide any generalizable support for the former, a plausible case can instead be offered in support of the opposite idea, namely that compulsory voting outperforms voting lotteries with respect to freedom. (shrink)

Purpose of this article is to assess the validity of the Razian conception of the rule of law by subjecting it to the acid test of Michel Troper's 'realist theory of interpretation'. The author argues that, in light of the Wittgensteinian view of rule-following, a serious indeterminacy can be seen as inherent in both this conception of the rule of law and Troper's theory of interpretation.

This book consists of a dialogue between two interlocutors, Pablo and a student, who discuss a great range of issues in social philosophy and political theory, and in particular, the emergence, working properties and economic effects of institutions. It uses the dialogical form to make philosophy more accessible, but also to show how ideas develop through intellectual interaction. The fact that one of the interlocutors is the "student" in a place in the real world makes the dialogue quasi-fictive in character (...) and enables the active engagement of the reader. After all, we are all philosophers and we develop our own philosophy by exchanging views and arguments. The dialogue form is and should remain the principal form of philosophizing, since ideas, like butterflies, do not merely exist – they develop. This is certainly the case in actual philosophical interaction, and it can be the case in written philosophical exposition. Although the dialogue does not presuppose prior acquaintance with the respective philosophical and social scientific literature under discussion in this book, it makes arguments more accessible, and conveys the feeling that there are no definite solutions to philosophical problems. (shrink)

The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

Building on Friedrich A. Hayek’s work in social philosophy, the paper gives an account of the central role of ignorance in institutional epistemology. The first part of the paper argues that if individuals involved in the search for knowledge are constitutionally ignorant and guided by norms, as Hayek saw them, they are more likely to attain knowledge if they follow different norms, including those that are redundant. The second part of the paper argues that the market as an institutional arrangement, (...) preferred by Hayek for its epistemic features, may lead to an epistemically detrimental reduction of agents following redundant norms. (shrink)

Abstract Differing interpretations of the political thought of David Hume have tended to emphasize either conservative, gradualist elements similar to Burke or rationalist aspects similar to Hobbes. The concept of indirect utility as used by Hume reconciles these two approaches. Indirect utility is best illustrated by Hume's conception of justice, in contrast to his conception of benevolence, which yields direct benefits. This understanding of Hume's consequentialism also helps underscore certain egalitarian aspects of Hume's thought.

Basing their claims on findings in the behavioral sciences that illuminate cognitive deficiencies, scholars spanning multiple disciplines argue that certain features of free market capitalist societies threaten human wellbeing, especially insofar as such societies are marked by a proliferation of consumer choices and incessant demands on decision making. This paper thus attempts three things. First, it outlines the criticisms of the expansive freedoms found in free market societies, based on those findings, in order to provide a reliable overview of the (...) shape of the critics’ concerns. Second, it surveys typical objections to these critics’ concerns, while also taking note of actual and anticipated counter-responses, in order to demonstrate why the debate about the value of those freedoms is not settled by those objections. Third, it argues that one objection remains that demands further debate and consideration before the critics’ choice restrictions should materialize. Namely, since there is solid evidence that entrepreneurship contributes to overall happy and healthy societies, and since the benefits of entrepreneurship are best realized in the types of societies marked by more expansive freedoms than the critics would countenance, the critics, who are concerned with general wellbeing, ought to consider the impact of their choice-restricting proposals on entrepreneurship. This paper does not claim that these critics offer baseless concerns about various threats to our wellbeing that arise from ample exercises of liberty, but it does argue that recognizing the role that entrepreneurship plays in fostering such wellbeing severely dampens the force of their implications for liberty. (shrink)

In order to re-make the world in its own image, neoliberal expansionism is predicated on the dominance of a particular regime of reason. The dominance of economic-juridical rationality relies in no small part on education to reproduce itself. In this sense, how and why a populace is educated in the law becomes a locus of struggle and of alternative and competing constructions of normative and political orders. Over the last decade the United Kingdom’s justice policy has become more attentive to (...) the role of citizens’ knowledge of the law in the context of a reinvigorated drive toward competition in the legal services market. Reformism in legal services thereby emerges as a strategy geared toward the economisation of the state by propagating specific types of legal knowledge. This reorientation of legal education is considered through, on the one hand, the insights of recent theories of neoliberalism and, on the other, a wider lens relating the intersection of legal education to the juridical-political realm. Finally, the paper outlines alternative strategies of community-based educational practices rooted in resistance to legal and economic orthodoxies. (shrink)

In his political writings, F. A. Hayek faces a classic liberal dilemma: he opposes coercion but recognizes that sometimes the state can help to minimize it. Hayek attempts to resolve the dilemma of the limits of state power by offering a definition of the rule of law that does not depend on a controversial conception of rights. However, his effort to formalize the rule of law fails. Not only does Hayek implicitly rely on an undefended theory of rights, but his (...) rule‐of‐law scheme is limited to the elaboration of general principles of good government, neglecting the need for reforms aimed directly at the political processes that result in the controversial forms of coercion he deplores. (shrink)

The article discusses the conditions under which can we say that people enter the economic system voluntarily. “The Need for an Exit Option” briefly explains the philosophical argument that voluntary interaction requires an exit option—a reasonable alternative to participation in the projects of others. “The Treatment of Effective Forced Labor in Economic and Political Theory” considers the treatment of effectively forced interaction in economic and political theory. “Human Need” discusses theories of human need to determine the capabilities a person requires (...) to have an acceptable exit option. “Capability in Cash, Kind, or Raw Resources” considers what form access to that level of capability should take—in cash, kind, or raw resources, concluding that a basic income guarantee is the most effective method to ensure an exit option in a modern, industrial economy. (shrink)

Mill’s Liberty Principle aims to protect ‘social’ freedom, which is traditionally understood as negative freedom. I argue that Mill’s conception of social freedom does not comfortably fit even a moralized conception of negative freedom, and that individuality, an ideal fundamental to On Liberty, is a robustly positive type of freedom. This raises the question of whether protecting social freedom involves an egalitarian, progressive state that ambitiously strives to create the social conditions of individuality. I consider the case for an affirmative (...) answer to that question, then argue that the ideal of individuality itself blocks interventions that some contemporary egalitarian, progressive liberals consider at least consistent with the Liberty Principle. These include autonomy-enhancing paternalism, and outright prohibition of as opposed to time, place, and manner regulation of the expression of some opinions that adversely affect protected minorities. Though not libertarian, the Liberty Principle is not an expression of this type of egalitarian liberalism, as evidenced inter alia by Mill’s emphatic rejection of state control of education, and his categorical case against prohibiting the expression of even the most extreme and insidious opinions. (shrink)

Philip Pettit’s republican conception of freedom is presented as an alternative both to negative and positive conceptions of freedom. The basic idea is to conceptualize freedom as non-domination, not as non-interference or self-mastery. When compared to negative freedom, Pettit’s republican conception comprises two controversial claims: the claim that we are unfree if we are dominated without actual interference, and the claim that we are free if we face interference without domination. Because the slave is a widely accepted paradigm of the (...) unfree person, the case of a slave with a non-interfering master is often cited as providing a good argument for the first republican claim and against a negative conception of freedom. One aim of this article is to raise doubts about whether this is true. The other aim of the article is to show that the prisoner—also a paradigm of the unfree person—presents a good argument against the second republican claim and in favour of a negative conception of freedom. This is called the ‘prisoner-argument’. It will be argued that neither Pettit’s distinction between free persons and free choices nor his distinction between compromising and conditioning factors of freedom can help to rebut the charge of the prisoner-argument. (shrink)

“There are strong temptations for those at the top of an organisational hierarchy to appropriate to themselves a disproportionate share of the resources of the organisation and to exercise too much power over the activities of other organisational members.” Hence the case for taking a cool look at executive remuneration and other possible breaches of applying the classical virtue of temperance to corporate behaviour. The author is Principal Lecturer in the Business Studies Department, Manchester Metropolitan University, Aytoun Building, Aytoun Street, (...) Manchester M1 3GH. (shrink)

Existing accounts of the Rule of Law are inadequate and require fleshing out. The main value of the ideal of rule of law for liberal political theory lies in the notion of predictability, which is essential to individual autonomy. The author examines this connection and argues that conservative theories of rule of law claim too much. Liberal theory equates the rule of law with legality, which is only one of the elements necessary for a just social order.

Several developments in the measurement of justice have drawn on Amartya Sen’s work on capabilities. This article addresses the relationship between Sen’s theoretical work and its interpretation in the measurement of justice, in particular by the United Nations Development Project and by the British Equality and Human Rights Commission and Government Equalities Office in its Equality Measurement Framework. It starts with a review of the diverse interpretations of Sen’s work, which range from considering it to be an innovative radical development (...) to locating his work within the liberal tradition. Central to the article is the question of whether it is possible to develop a meaningful operationalization of Sen’s philosophical distinctions, in particular that between capabilities and functionings, so as to inform measurement frameworks. It finds that on both conceptual and methodological grounds it is not possible to sustain this distinction in practice. This is illustrated by an analysis of the changing measurement of justice in frameworks developed by the UNDP and the UK government. Changes in the content of the measurement frameworks in radical or neoliberal directions are not constrained by Sen’s theoretical analysis, despite claims that Sen’s work informs these frameworks. The openness of Sen’s work means that it can be used by forces generated by the neoliberal environment to support their redefinition of justice. (shrink)

The paper reconstructs in economic terms Friedman's theorem that the only social responsibility of firms is to increase their profits while staying within legal and ethical rules. A model of three levels of moral conduct is attributed to the firm: (1) self-interested engagement in the market process itself, which reflects according to classical and neoclassical economics an ethical ideal; (2) the obeying of the "rules of the game," largely legal ones; and (3) the creation of ethical capital, which allows moral (...) conduct to enter the market process beyond the rules of the game. Points (1) and (2) position the Friedman theorem in economic terms while point (3) develops an economic revision of the theorem, which was not seen by Friedman. Implications are spelled out for an instrumental stakeholder theory of the firm. (shrink)

The paper critiques the relationship between personalist ethics and institutional economics, and accepts that institutional economics can be difficult to reconcile with humanistic management that builds on personalist ethics. Even so the paper connects impersonalist ethics with institutional economics. On this ground, the paper demonstrates how theory and practice of personalist humanist management can lean on impersonalist ethics, i.e., institutional economics. Three pathways are laid out for such leanings. It is argued that to understand these alignments is important to improve (...) the success of humanistic management, when a market economy context is given. The paper further contends that personalist humanistic management may imply abandoning the market economy when it positions itself in opposition to institutional economic reasoning that underpins the market economy. (shrink)

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised (...) over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, (...) on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

In this essay I discuss a powerful challenge to high-liberalism: the challenge presented by neoclassical liberals that the high-liberal assumptions and values imply that the full range of economic liberties are basic rights. If the claim is true, then the high-liberal road from ideals of democracy and democratic citizenship to left-liberal institutions is blocked. Indeed, in that case the high-liberal is committed to an institutional scheme more along the lines of laissez-faire capitalism than property-owning democracy. To present and discuss this (...) challenge, I let John Rawls represent the high-liberal argument that only a narrow range of economic liberties are basic rights and John Tomasi represent the neoclassical liberal argument that the full range of economic liberties are basic rights. I show that Rawls’s argument is inadequate, but also that Tomasi’s argument fails. I thus conclude that high-liberalism is in a precarious situation, but is not yet undone by the neoclassical liberal challenge. (shrink)

In the 1930s, socialist economists used the assumptions of equilibrium theory to argue that a central planner could coordinate supply and demand from above. This argument led Hayek, over the years, to try to explain the limitations of equilibrium theory and, conversely, to explain how capitalism functioned without the assumptions of equilibrium being met. In a changing world of agents who are ignorant of the future, how is a functioning market “order” possible? One answer can be found in Hayek's argument (...) that evolved rules make people's future behavior more predictable and, more to the point, that they contain previously accumulated knowledge that provides the building blocks for future economic growth. Hayek's evolutionary theory was flawed, however, in failing to explain how people can know which rules are responsible for their success or failure so that they persist in using those rules and pass them forward in time. However, markets provide immediate feedback about success and failure through profits and losses. An evolutionary explanation of the economy would have permitted Hayek to dispense with the metaphor of general equilibrium, which was increasingly irrelevant to his understanding of economic order. (shrink)