Abstract:In contrast to “social contract” theories of the corporation, a moral justification of the corporation as actual, not hypothetical, agreement is presented. Central to the justification is the idea of personal projects, as developed by Loren Lomasky. The key idea is the role that corporations can play in the construction and advancement of personal, value-creating projects. The concept of the corporation as actual agreement, as a type of “right of association” theory, is defended against influential criticism of such theories by (...) Thomas Donaldson. (shrink)

In the wake of recent corporate scandals, this paper examines the claim made by John Boatright that business ethics, as it is currently conceived, “rests on a mistake.” Ethics in business should not be achieved through managerial vision, discretion or responsibility; rather, ethics should shape the design of institutions that regulate business from the outside. What ethicists should advocate for, according to Boatright, are moral markets not moral managers. I explore the empirical and normative dimensions of his claim with special (...) attention paid to the extent to which Boatright’s development of the economic theory of the firm supports his position. I conclude by suggesting some reasons why moral markets and moral management are compatible frameworks for corporate reform. (shrink)

This book originated as lectures for a course on political philosophy that Rawls taught regularly at Harvard in the 1980s.

Abstract:The organization is importantly different from both the nation-state and the individual and hence needs its own ethical models and theories, distinct from political and moral theory. To develop a case for organizational ethics, this paper advances arguments in three directions. First, it highlights the growing role of organizations and their distinctive attributes. Second, it illuminates the incongruities between organizations and moral and political philosophy. Third, it takes these incongruities, as well as organizations’ distinctive attributes, as a starting point for (...) suggesting an agenda for an ethics of organizations. (shrink)

A generation ago, the field of business ethics largely abandoned analyzing the broader issue of social justice to focus upon more micro concerns. Donaldson applied the social contract tradition of Locke and Rawls to the ethics of management decision-making, and with Dunfee, has advanced this project ever since. Current events suggest that if the field is to remain relevant it needs to return to examining social and economic fairness, and Rawl's approach to social contracting suggests a way to start. First, (...) however, the field needs to discard the weaker and counterproductive aspects of its Lockean legacy: Locke's hostility to government activism and his indifference with regard to outcomes for the bulk of society. Donaldson's and Dunfee's social contracting approach is not suited to, nor was it designed to, analyze or resolve broad issues of social and economic justice. Their postulated network of communities upon which they rely is problematic in a number of ways, and while they take the legal and political status quo into account, their method does not deal with the historical reality that, as the economic and social environment changes, promoting greater justice requires new and sometimes coercive government interventions. Rawls's work, however, does acknowledge the historically demonstrable necessity of using the power of government to help to achieve desirable social outcomes. While he rejected Mill's methodology, Rawls was inspired by the earlier philosopher's concerns for social justice at a time of major economic change. The field would do well to follow the example of both men in this respect. (shrink)

We argue that the Rawlsian social contract argument advanced for stakeholder theory by R. Edward Freeman, writing alone and with William M. Evan, fails in three main ways. First, it is true to Rawls in neither form, nor purpose, nor the level of knowledge (or ignorance) required to motivate the veil of ignorance. Second, it fails to tailor the veil of ignorance to the fairness conditions that are required to solve the moral problem that Freeman and Evan set out to (...) solve (whereas Rawls’s own use of the device surely tailors the veil of ignorance to the problem of designing a just social order). Third, the argument, considered apart from its claimed Rawlsian pedigree, fails to bolster the stakeholder theory because it fails to demonstrate the rationality of adopting the institutional rules that Freeman and Evan favor. (shrink)

Abstract:Phillips and Margolis argue that moral philosophy is a poor basis for business ethics, but their narrow view of moral philosophy would exclude Aristotle, for one. They criticize me for assimilating states and organizations in using the Rawlsian device, but they put too much faith in Rawls’s distinction between states and voluntary organizations and pay too little attention to the continuities between them. Their plea for a conceptually autonomous ethics for organizations I interpret as reasonable and largely compatible with my (...) own stated opinion. (shrink)

Abstract:Phillips and Margolis argue that moral philosophy is a poor basis for business ethics, but their narrow view of moral philosophy would exclude Aristotle, for one. They criticize me for assimilating states and organizations in using the Rawlsian device, but they put too much faith in Rawls’s distinction between states and voluntary organizations and pay too little attention to the continuities between them. Their plea for a conceptually autonomous ethics for organizations I interpret as reasonable and largely compatible with my (...) own stated opinion. (shrink)

The purpose of this paper is to enter the conversation about stakeholder theory with the goal of clarifying certain foundational issues. I want to show, along with Boatright, that there is no stakeholder paradox, and that the principle on which such a paradox is built, the Separation Thesis, is nicely self-serving to business and ethics academics. If we give up such a thesis we find there is no stakeholder theory but that stakeholder theory becomes a genre that is quite rich. (...) It becomes one of many ways to blend together the central concepts of business with those of ethics. Rather than take each concept of business singly or the whole of “business” together and hold it to the light of ethical standards, we can use the stakeholder concept to create more fine-grained analyses that combine business and ethics; or more simply, we can tell many more, and more interesting, stories about business. (shrink)

Each volume of this series of companions to major philosophers contains specially commissioned essays by an international team of scholars and will serve as a reference work for students and nonspecialists. John Rawls is the most significant and influential philosopher and moral philosopher of the twentieth century. His work has profoundly shaped contemporary discussions of social, political and economic justice in philosophy, law, political science, economics and other social disciplines. In this exciting collection of new essays, many of the world's (...) leading political and moral theorists discuss the full range of Rawls's contribution to the concepts of political and economic justice, democracy, liberalism, constitutionalism, and international justice. There are also assessments of Rawls's controversial relationships with feminism, utilitarianism and communitarianism. New readers will find this the most accessible guide to Rawls currently available. Advanced students and specialists will find a conspectus of recent developments in the interpretation of Rawls. (shrink)

Many people, including many egalitarian political philosophers, professa belief in equality while enjoying high incomes of which they devotevery little to egalitarian purposes. The article critically examinesways of resolving the putative inconsistency in the stance of thesepeople, in particular, that favouring an egalitarian society has noimplications for behaviour in an unequal one; that what''s bad aboutinequality is a social division that philanthropy cannot reduce; thatprivate action cannot ensure that others have good lives; that privateaction can only achieve a ``drop in (...) the ocean''''; that private effortis not called for, since justice is a matter for the state to enforce;that private effort cannot remove the fundamental injustice, whichis inequality of power; and that private effort involves an unreasonablylarge psychological burden. (shrink)

If You're an Egalitarian, How Come You're So Rich? is a persuasive extension of Cohen's critique of Rawls's egalitarianism, embedded in reflections on the inadequacies of Marxist theory, on the rationality of "nurtured" beliefs, on Cohen's own personal and intellectual journey, and, finally, on the issue named in the title, the responsibility of the wealthy just in an unjust society. It is an uneven, but highly readable, book. Based on Cohen's 1996 Gifford Lectures, the book is divided into a Prospectus (...) and ten Lectures, one of which was apparently a multimedia sing-along on the "lighter side of the problem of evil" and could not be reproduced! (shrink)

This presidential address to the Society for Business Ethics argues that business ethics rests upon the mistaken assumption thatteaching and research in the field ought to aim at the incorporation of ethics into managerial decision making. An alternative to this Moral Manager Model is a Moral Market Model, in which the aim is to develop markets that produce ethical outcomes. The differencesbetween the two models are discussed with reference to the themes of responsibility, participation, and relationships.

This article develops contractarian business ethics by applying social contract arguments to a specific question: What are the pre-legal (or moral) rights and responsibilities of corporations? The argument uses a hypothetical social contract to show the existence of for-profit corporations in democratic capitalist societies is consistent with Rawls’s fundamental principles of justice. Corporations ought to have recognised their rights to be autonomous, to pursue private purposes, and to engage in economic activities. Corporations have a responsibility to respect the freedom and (...) human rights of all people, and not to interfere with government programs that ensure people have the education and training they need to find and keep corporate employment and that provide a safety-net that prevents destitution. If corporations have any other rights and responsibilities, those rights and responsibilities need to be established by actual social contracts, probably in the form of legitimate democratic processes. (shrink)

This book continues and revises the ideas of justice as fairness that John Rawls presented in _A Theory of Justice_ but changes its philosophical interpretation in a fundamental way. That previous work assumed what Rawls calls a "well-ordered society," one that is stable and relatively homogenous in its basic moral beliefs and in which there is broad agreement about what constitutes the good life. Yet in modern democratic society a plurality of incompatible and irreconcilable doctrines--religious, philosophical, and moral--coexist within the (...) framework of democratic institutions. Recognizing this as a permanent condition of democracy, Rawls asks how a stable and just society of free and equal citizens can live in concord when divided by reasonable but incompatible doctrines? This edition includes the essay "The Idea of Public Reason Revisited," which outlines Rawls' plans to revise _Political Liberalism,_ which were cut short by his death. "An extraordinary well-reasoned commentary on _A Theory of Justice_...a decisive turn towards political philosophy." --_Times Literary Supplement_. (shrink)

In this superb introduction, Samuel Freeman introduces and assesses the main topics of Rawls' philosophy. Starting with a brief biography and charting the influences on Rawls' early thinking, he goes on to discuss the heart of Rawls's philosophy: his principles of justice and their practical application to society. Subsequent chapters discuss Rawls's theories of liberty, political and economic justice, democratic institutions, goodness as rationality, moral psychology, political liberalism, and international justice and a concluding chapter considers Rawls' legacy. Clearly setting out (...) the ideas in Rawls' masterwork, _A Theory of Justice_, Samuel Freeman also considers Rawls' other key works, including _Political Liberalism_ and _The Law of Peoples_. An invaluable introduction to this deeply influential philosopher, _Rawls_ is essential reading for anyone coming to his work for the first time. (shrink)