In the business ethics literature, many argue that managerial decision making ought to be improved by more robust ethical concerns. Some see the virtue of “practical wisdom” as the key for improved managerial decision making. However, because of the epistemic limitations confronting decision makers in the face of irreducible market complexity, there is a risk that practical wisdom, employed in the context of day‐to‐day managerial decision making, becomes an impractical concept. Nevertheless, if the attempt to incorporate virtue ethics (and its (...) related concepts) into business practices is laudable, if indeed a virtuous life is worth pursuing and practical wisdom plays an essential role toward that end, it is important to attempt to salvage practical wisdom and uncover its appropriate usage. Thus, this article pursues two major ends. First, upon surveying some of the prominent and standard usages of the term, it articulates concerns, rooted in epistemic limitations, about the way that practical wisdom appears in business ethics literature. Second, it offers a new way forward for understanding “practical wisdom.” By contextualizing day‐to‐day, rule‐based managerial decision making within the ethical value of the market order, practical wisdom reappears as the higher‐order capacity to pursue vocations, as morally worthwhile projects, in business. (shrink)

Today there is a tendency to do ethics on the basis of what I should like to call the “self-other model.” On this view, an action has no moral worth unless it benefits others–and not even then, unless it is motivated by altruism rather than selfishness. This radical rift between self-interest and virtue traces back at least to Philo of Alexandria, according to whom, “lovers of self, when they have stripped and prepared for conflict with those who value virtue, keep (...) up the boxing and wrestling until they have either forced their opponents to give in, or have completely destroyed them.” More recently, the distinction between those who value themselves and those who “value virtue” has been drawn sharply by Bernard Williams: “[I]n moral theory … it is not the Kantian leap from the particular and the affective to the rational and universal that makes all the difference; it is rather the Humean step–that is to say, the first Humean step–from the self to someone else.”. (shrink)

I offer an appreciation and critique of Ernst Fehr’s altruism research in experimental economics that challenges the "selfishness axiom" as an account of human behavior. I describe examples of Fehr’s experiments and their results and consider his conceptual terminology, particularly his "biological" definition of altruism and its counterintuitive implications. I also look at Fehr’s experiments from a methodological perspective and examine his explanations of subjects’ behavior. In closing, I look at Fehr’s neuroscientific work in experimental economics and question his adherence (...) to a subjective expected utility interpretation of subjects’ behavior. Key Words: altruism • Ernst Fehr • strong reciprocity • neuroeconomics • experimental economics. (shrink)

Moralists tend to have a low opinion of self-interest. It is seen as force that has to be controlled or transcended. This essay tries to get beyond the bifurcation of human motivations into self-interest (which is seen as vicious or non-moral) and concern for others (which is virtuous). It argues that there are some surprising affinities between self-interest and morality. Notably the principal force that checks self-interest is self-interest itself. Consequently, self-interest often coincides with and reinforces the commands of morality (...) and promotes civility and consideration for others. Therefore it provides us with resources for constructing a more humane and civil society. (shrink)

Financial misconduct has come into the spotlight in recent years, causing market regulators to increase the reach and severity of interventions. We show that at times the economic benefits of illicit financial activity outweigh the costs of litigation. We illustrate our argument with data from the US Securities and Exchanges Commission and a case of investment misconduct. From the neoclassical economic paradigm, which follows utilitarian thinking, it is rational to engage in misconduct. Still, the majority of professionals refrain from misconduct, (...) foregoing economic rewards. We suggest financial activity could be reimagined taking into account intrinsic and prosocial motivations. A virtue ethics framework could also be applied, linking financial behavior to the quest for moral excellence and shared flourishing. By going beyond utilitarian thinking and considering alternative models, we offer a fuller account of financial behavior and a better perspective from which to design deterrence methods. (shrink)

Blood banks all over the world attempt to cover the demand for blood by donations from voluntary non-remunerated donors. The discussion regarding the acceptability of blood donations by haemochromatosis patients focuses on the question of whether health benefits violate the rule of the altruistic donor. Utilitarian and deontological arguments for and against the policy of accepting blood donors who need to let blood regularly in order to stay healthy are considered by this article. A closer look at the procedure reveals (...) that the confusion is due to the conflation of, on the one hand the phlebotomy, and on the other hand, the decision about the destination of the blood afterwards. The health benefits are connected to the phlebotomy and not to the donation. The morally relevant point in the decision as to whether the candidate is a truly altruistic donor is whether he donates without asking for a benefit in return. It is concluded that haemochromatosis patients can be free, voluntary, and altruistic blood donors. (shrink)