Abstract

This essay responds to Hasnas’s recent article “The Normative Theories of Business Ethics: A Guide for the Perplexed” in Business Ethics Quarterly. Hasnas claims that the stockholder theory is more plausible than commonly supposed and that the stakeholder theory is prone to significant difficulties. I argue that Hasnas’s reasons for favoring the stockholder over the stakeholder theory are not asstrong as he suggests. Following Hasnas, I examine both theories in light of two sets of normative considerations: utilitarian anddeontological. First, I show that utilitarian considerations clearly favor the stakeholder theory. I then argue that though Hasnas rightly accents the basic deontological constraint at the core of the stockholder theory, he is wrong to think that acknowledging such a constraint necessarily counts against the stakeholder theory. Here, I develop Ross’s notion of prima facie obligations to show how a viable stakeholder theory might be developed within a deontological framework.