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. (shrink)

The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the social contracttheory. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. Thestakeholder theory, in contrast, is widely accepted, and the social contract theory appears to be gaining increasing adherents. In thisarticle, I undertake a critical review of the supporting arguments for each of the theories, and argue that the stockholder theory is neitheras outdated nor as (...) flawed as it is sometimes made to seem and that there are significant problems with the grounding of both thestakeholder and social contract theory. I conclude by suggesting that a truly adequate normative theory of business ethics must ultimately be grounded in individual consent. (shrink)