We briefly review the recent literature on globalization, and present empirical evidence showing that economic globalization has been correlated with higher economic growth and lower poverty rates. We then evaluate the consequences of economic globalization in light of standards of commutative justice as Smith articulated, distributive justice as Rawls presented, and practical justice as Kolm explicated. This essay argues that economic globalization fulfills the requirements of all three species of justice.

In modern economics, the use of sympathy and empathy shows significant ambiguity. Sympathy has been used in two different senses. First, it refers to cases where the concern for others directly affects an individual's own welfare . Second, the term has served the purposes of welfare economics, where it is associated with interpersonal comparisons of the extended sympathy type, that is, comparisons between one's own situation in a social state and someone else's in a different social state . On the (...) other hand, empathy has been used interchangeably with sympathy either to render the idea of interdependent utility functions , or to convey the imaginative process of imagining oneself in someone else's place. (shrink)

. The modern interpretation of Smith as a retributive theorist of punishment is challenged in favour of a view of his work as containing a curious amalgam of retributive and utilitarian elements. This unsynthesised theoretical compound accounts for many of the contradictory positions assumed by him, examples of which are given in the article. At the level of “punishment” , the retributivehtilitarian dichotomy is observed in his discussions of merit and demerit and propriety and impropriety . At the level of (...) state punishment, the same dichotomy is seen in his juxtaposition of considerations of individual justice and the political ends of punishment. A final section locates Smith's “double cleft stick” theoretically in his position on the one hand in the Hobbesian materialist tradition and on the other in his historical stance half‐way between the individualism of the contractarians and the full blown utilitarianism of Bentham. (shrink)

Isaiah Berlin distinguished between negative liberty, which is freedom from external coercion, and positive liberty, the freedom to master oneself. But the schema is too simple. Adam Smith thought that God had harmoniously arranged the world in such a way that the freedom provided by our negative liberty tended to redound to the public good. Mill, worried about the deleterious effects of public ignorance, accorded elites a prominent role in ensuring that negative liberty would lead to positive results. More recently, (...) libertarian paternalists, such as Richard Thaler and Cass Sunstein, have argued that research on biases and heuristics demonstrates the need for psychologically informed elites to direct negative liberty toward positive ends by crafting better ?choice contexts.? In these thinkers one can discern a third version of liberty, where negative liberty is not an end in itself but a means, however insufficient, to positive outcomes. (shrink)

This paper attempts to relax the tension between Adam Smith's claim that sympathy involves an evaluative act of imaginative projection and his claim that sympathy involves a non-evaluative act of imaginative identification. The first section locates the tension specifically in the two different ways Smith depicts the stance adopted by the sympathizer. The second section argues that we can relax this tension by finding an important role for a non-evaluative stance in Smith's normative account of moral evaluation. This solution protects (...) the continuity in Smith's account of sympathy (cf. Griswold 1999: 99–103). Because of the particular way in which it renders intelligible the relationship between the evaluative and non-evaluative stances, this solution also emphasizes the importance that respect for the agent's conscience has in Smith's conception of an ideal moral judge (cf. Darwall 2004; 2006). The third section investigates a possible systematic basis for Smith's normative commitment to respectful moral judgment. (shrink)

Epistemic systems are social processes generating judgments of truth and falsity. I outline a mathematical theory of epistemic systems that applies widely. Areas of application include pure science, torture, police forensics, espionage, auditing, clinical medical testing, democratic procedure, and the market economy. I examine torture and police forensics in relative detail. This paper is an exercise in comparative institutional epistemics, which considers how the institutions of an epistemic system influence its performance as measured by such things as error rates and (...) the volume of judgments generated. (shrink)

This paper discusses Adam Smith's views of social justice. It first describes Smith's optimistic view of markets, for example with regard to the absence of negative externalities, which implies that he considered certain normative problems to be the exception rather than the rule. Then, Smith's views on redistribution are discussed: although he is sympathetic to progressive taxation, his main focus remains on free markets, which can partly be explained by his distrust of politicians. If one takes a closer look as (...) Smith's views of markets, however, it turns out that one of the reasons why he endorses them is their distributive features. He saw them as an antidote to the inequalities of the feudal age, offering all individuals an opportunity to work their way up to a decent standard of living and leading to more equality in the long run. Thus, Smith's account, while out-dated in certain ways, can serve as an inspiration for thinking about distributive justice not only as a question of redistributive taxation but also as a question of the institutional design of markets. (shrink)

Mandeville offers an evolutionary explanation of norms that pivots on the power of praise to affect individuals. Yet this sort of account is not mentioned by Hume or Ferguson, and only indirectly noted by Smith. Nonetheless, there are various similarities in the thought of Mandeville and these philosophers. After delineating some resemblances, the essay takes up the objection Hume poses to Mandeville: praise fails to motivate if individuals take no pride in moral conduct. To this challenge there is a Mandevillean (...) response that emphasizes how, in the evolutionary emergence of norms, the original praise need not be understood in moral terms. (shrink)

Mandeville offers an evolutionary explanation of norms that pivots on the power of praise to affect individuals. Yet this sort of account is not mentioned by Hume or Ferguson, and only indirectly noted by Smith. Nonetheless, there are various similarities in the thought of Mandeville and these philosophers. After delineating some resemblances, the essay takes up the objection Hume poses to Mandeville: praise fails to motivate if individuals take no pride in moral conduct. To this challenge there is a Mandevillean (...) response that emphasizes how, in the evolutionary emergence of norms, the original praise need not be understood in moral terms. (shrink)

In the Theory of Moral Sentiments, Adam Smith observed that we live in a fundamentally conflictual world. Although he held that we are creatures who sympathize, he also observed that our sympathy seems to be constrained by geographical limits. Accordingly, traditional theories of cosmopolitanism were implausible; yet, as a moral philosopher, Smith attempted to reconcile his bleak description of the world with his eagerness for international peace. Smith believed that commercial intercourse among self‐interested nations would emulate sympathy on a global (...) scale, balancing national wealth and international peace without a coercive apparatus to enforce compliance with international law. (shrink)

There is a vast literature on the meanings of legal penalties. However, we lack a theory that explains them according to the formation of the modern state. Oakeshott's theory can help explain this phenomenon, leading to an attempt of the individual to take over as many powers of the state as possible. Thus, Kant's and Smith's retributivism is the most consistent of all those theories. Nevertheless, the preventive and resocializing theory of Bentham succeeded eventually. But is this a liberal theory? (...) We contrast the explanations of H.L.A. Hart and Frederick Rosen in order to lay the groundwork for a liberal theory of the meaning of legal sanctions. (shrink)

Where exactly should we place Adam Smith in the cannon of classical liberalism? Smith's advocacy of free market economics and defence of religious liberty in The Wealth of Nations suffice for including him somewhere in that tradition.1 The nature and extent of Smith's liberalism, however, remain up for debate. One recent trend has been to characterise Smith as a proponent of social liberalism. This includes those like Stephen Darwall, Samuel Fleischacker and Charles Griswold, who have drawn attention to a kind (...) of descriptive moral egalitarianism in Smith.2 Humans, Smith seems to hold, are naturally disposed to valuing one another under a conception of equality. But that is not all these scholars suggest. They have also hinted at something more contentious ? the idea that, according to Smith, we value one another in a way resonant with contemporary notions of human dignity, conceived as the inherent value of persons grounding certain rights to, or restrictions on, treatment by others.3 In saying so, these scholars have hit upon something remarkable. However, I also think their arguments in this respect are both indirect and incomplete. Consequently, the full import of Smith's view remains obscure. This essay aims to bring some clarity. 1I intend this historically. I grant there are good reasons to be sceptical about the ultimate fate of liberty in capitalist society (e.g. Marxist reasons and reasons based on various postmodern critiques of enlightenment ideology). Also, the designation ?free market? should be understood loosely, as most scholars now agree it is a mistake to identify Smith with thoroughgoing laissez-faire economics. 2Darwall, S., ?Sympathetic Liberalism: Recent Work on Adam Smith?, Philosophy Fleischacker, S., A Third Concept of Liberty (Princeton: Princeton University Press, 1999) and On Adam Smith's Wealth of Nations (Princeton: Princeton University Press, 2004); and Griswold, C., Adam Smith and the Virtues of Enlightenment (New York: Cambridge University Press, 1999). Other major commentators holding some version of this view might include Raphael, D. D. The Impartial Spectator (New York: Oxford University Press, 2007) and Vivienne Brown, Adam Smith's Discourse: Canonicity, Commerce and Conscience (London: Routledge, 1994). 3See e.g. Fleischacker (2004), 205; Darwall at 142, 156 and Griswold at 235?239. However, one must read Fleischacker carefully, for he also uses the adjectival ?dignified? to express Smith's concern with what is ?honourable? or ?respectable? about persons, which use does not obviously match up with the notion of inherent value (see e.g. p. 207). Darwall's argument includes by far the most explicit discussion of ?dignity? as I've defined it. But as Darwall's article is ostensibly a book review (albeit a substantive one that addresses three books at once, including Griswold's), it cannot be called a direct inquiry. Griswold never explicitly puts his interpretation in terms of ?dignity?, but that is clearly what he is after. Thus Darwall also reads him that way. (shrink)

Jacob Viner introduced the term ‘sub-rational’ to characterize the faculties – human instinct, sentiment and intuition – that fall between animal instinct and full-blown reason. The Scots considered sympathy both an affective and a physiological link between mind and body, and by natural history, they traced the most foundational societal institutions – language and law, money and property – to a sub-rational origin. Their ‘social evolutionism’ anticipated Darwin's ‘dangerous idea’ that humans differ from the lower animals only in degree, not (...) in kind. Darwin had the ability to ‘trade places in the imagination’, as Adam Smith would say, with plants and animals, and ‘think’ as they do. The trend today is to ‘positivize,’ ‘behaviorize’ and otherwise reduce the sub-rational to the purely biological. My suggestion is that we trade places in the imagination with the Scottish moral scientists and Darwin, and try thinking as they did. (shrink)

In this paper, I argue that, in his Theory of Moral Sentiments, Adam Smith conflates two different meanings of ?self-command?, which is particularly puzzling because of the central role of this virtue in his theory. The first is the matrix of rational action, the one described in Part III of the TMS and learned in ?the great school of self-command?. The second is the particular moral virtue of self-command. Distinguishing between these two meanings allows us, on the one hand, to (...) solve some apparent paradoxes of the text; and, on the other, to identify various features of both the practical reason and deontological ethical traditions that are present in Smith's sentimentalism, enriching his phenomenological account of moral actions. (shrink)

Liberal political thought is underwritten by an enduring fear of civil and state violence. It is assumed within liberal thought that self?interest characterises relations between individuals in civil society, resulting in violence. In absolutist doctrines, such as Hobbes?, the pacification of private persons depended on the Sovereign's command of a monopoly of violence. Liberals, by contrast, sought to claim that the state itself must be pacified, its capacity for cruelty (e.g., torture) removed, its capacity for violence (e.g., war) reduced and (...) controlled. A core tension within liberal thought thus arises between containing civil violence by empowering the state and containing state violence by constraining the state. One result of this tension is the highly selective conception of ?pacification? within liberalism, which, historically, has accommodated indifference to endemic violence, both within civil society, and beyond civil society ? as in (past) arguments licensing imperialism and in (present) arguments for disciplining ?rogue? states. (shrink)

This article leverages insights from the body of Adam Smith’s work, including two lesser-known manuscripts—the Theory of Moral Sentiments and Lectures in Jurisprudence —to help answer the question as to how companies should morally prioritize corporate social responsibility (CSR) initiatives and stakeholder claims. Smith makes philosophical distinctions between justice and beneficence and perfect and imperfect rights, and we leverage those distinctions to speak to contemporary CSR and stakeholder management theories. We address the often-neglected question as to how far a company (...) should be expected to go in pursuit of CSR initiatives and we offer a fresh perspective as to the role of business in relation to stakeholders and to society as a whole. Smith’s moral insights help us to propose a practical framework of legitimacy in stakeholder claims that can help managers select appropriate and responsible CSR activities. (shrink)

We offer a new and robust model of the emergence and persistence of cooperation when interactions are anonymous, the population is well mixed, and evolution selects strategies according to material payoffs. The model has a Prisoner’s Dilemma structure, but with an outside option of non-participation. The payoff to mutual cooperation is stochastic; with positive probability, it exceeds that from cheating against a cooperator. Under mild conditions, mutually beneficial cooperation occurs in equilibrium. This is possible because the non-participation option holds down (...) the equilibrium frequency of cheating. Dynamic properties of the model are investigated theoretically and through simulations based on replicator dynamics. (shrink)

In spite of the numerous occasions on which Adam Smith expresses his reservations regarding the morality of commercial societies, there seems to be an agreement that he believed such systems to be fundamentally just. To some, this is so because they attribute to Smith a concept of justice which is narrowly confined to the ‘right to have [one's] body free from injury, and [one's] liberty free from infringement’ . In a world where people have an interest in the fortune of (...) others regardless of how selfish their motives for action might be, injuring someone else's body or restricting someone else's liberty is unlikely to be the behavioural norm. To others, natural liberty in the sphere of economic activity is just not only because individuals behind the system naturally comply with justice in its commutative sense, but also because the system itself generates justice in the distributive sense. Such arguments are based on either the working of the invisible hand — which produces the ‘same distribution of the necessities of life, which would have been made, had the earth been divided into equal portions among all its inhabitants …’ — or on the approval of the ‘impartial spectator’ of the distribution which is associated with the natural price. (shrink)

Based on the extended conceptualization of corporate citizenship, as provided by Matten and Crane :166–179, 2005), this paper examines the new role of corporations in society. Taking the ideas of Matten and Crane one step further, we argue that the status of corporations as citizens is not solely defined by their factual engagement in the provision of citizenship rights to others. By analysing political and sociological citizenship theories, we show that such engagement is more adequately explained by a change in (...) the self-conception of corporate citizens from corporate bourgeois to corporate citoyens. While the corporate bourgeois acts primarily for private business purposes, the corporate citoyen engages in society, performing civil and political rights and duties. As an intermediate actor in society, shaped by the principle of subsidiary task-sharing, the corporate citoyen undertakes co-responsibility for social and civic affairs and actively collaborates with fellow citizens below, beside and beyond governmental regulation. (shrink)