Consider a stylized contrast between medical and business ethics. Both fields of applied ethics focus on a profession whose activities are basic to human welfare. Both enquire into obligations of professionals, and the relations between goals intrinsic to the profession and ethical duties to others and to the society. I am struck, however, by a fundamental difference: whereas medical ethics takes place against a background of almost universal consensus that the practice of medicine is admirable and morally praiseworthy, the business (...) profession is embedded within the framework of firms in a capitalist market economy, and for the last century and a half there has been sustained debate about the moral and economic justifiability of such an economy. To be sure, even under socialism there might be an “ethics of socialist managers,” and there would be some overlap between such an ethic and contemporary business ethics. Nevertheless, many of the characteristic problems of business ethics — e.g., what are the obligations of a corporation to its shareholders? — arise only in the context of a private property-based market economy. This raises a deep problem for business ethics: can one develop an account of ethical practices for an activity (i.e., business) while ignoring that the context in which this activity occurs (i.e., capitalism) is morally controversial? It is as if the work in medical ethics proceeded in the midst of widespread disagreement whether medicine was a good thing. Another way of thinking about the problem is: if one teaches business ethics, does this commit you to accepting that business can be ethical? And doesn’t this commit you to accepting that capitalism is justifiable?1 I suspect that this is a serious problem for many teachers of business ethics. Many were trained in academic philosophy, and within academic philosophy there are many who think — or at least suspect — that capitalism is basically unjust, or perhaps that only a greatly modified capitalism would be acceptable.. (shrink)

In this book, T. M. Scanlon offers new answers to these questions, as they apply to the central part of morality that concerns what we owe to each other.

This chapter contains sections titled: Redistributing Wealth, I: Taxing Large Estates and Incomes Redistributing Wealth, II: The Structure of Universal Assets Individual Assets versus Common Wealth Property‐Owning Democracy as an Incomplete Ideal Appendix: Accumulation of Capital Assets Over a 35‐Year Period References.

This chapter contains sections titled: Contractualist Justification and Private Property Three Models of Welfare Rights The Proposals as Reasonable Alternatives Objections Conclusion References.

Previous edition, 1st, published in 1971.

Under a basic capital grant policy, every citizen receives a large capital grant as a right, typically in their early adulthood. Is BC part of the institutional framework of a just economy? Starting from John Rawls's discussion of just economic systems, this article clarifies Rawls's reasons for thinking we need to complement welfare state policies with property-owning democracy and/or liberal socialist policies. It then seeks to clarify the grounds specifically for BC as a particular policy of the property-owning democracy type, (...) and considers in depth what it adds to a policy of basic income. (shrink)

The twentieth century saw a vigorous debate over the nature of rights. Will theorists argued that the function of rights is to allocate domains of freedom. Interest theorists portrayed rights as defenders of well-being. Each side declared its conceptual analysis to be closer to an ordinary understanding of what rights there are, and to an ordinary understand- ing of what rights do for rightholders. Neither side could win a decisive victory, and the debate ended in a standoff.

Suppose libertarians could prove that durable, unqualified private property rights could be created through 'original acquisition' of unowned resources in a state of nature. Such a proof would cast serious doubt on the legitimacy of the modern state. It could also render the approach to property rights that I favour irrelevant. I argue here that none of the familiar Lockean-libertarian arguments for a strong natural right to acquisition succeed, and that any successful argument for grounding a right to acquire would (...) have to use my favoured approach to property rights - the 'vector-sum' approach. I conclude with some doubts about original acquisition theory and natural property rights. (shrink)

Can the right to private property be claimed as one of the `rights of mankind'? This is the central question of this comprehensive and critical examination of the subject of private property. Jeremy Waldron contrasts two types of arguments about rights: those based on historical entitlement, and those based on the importance of property to freedom. He provides a detailed discussion of the theories of property found in Locke's Second Treatise and Hegel's Philosophy of Right to illustrate this contrast. The (...) book contains original analyses of the concept of ownership, the ideas of rights, and the relation between property and equality. The author's overriding determination throughout is to follow through the arguments and values used to justify private ownership. He finds that the traditional arguments about property yield some surprisingly radical conclusions. (shrink)

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

Systemic financial risk is one of the most significant collective action problems facing societies. The Great Recession brought attention to a tragedy of the commons in capital markets, in which market participants, from the first-time homebuyer to Wall Street financiers, acted in ways beneficial to themselves individually, but which together caused substantial collective harm. Two kinds of risk are at play in complex chains of transactions in financial markets: ordinary market risk and systemic risk. Two moral questions are relevant in (...) such cases. First, from the standpoint of interactional morality, does a person have a moral duty to avoid risk of harm to others if their financial transactions contribute in some way, however small, to the loss or harm? This article identifies the conditions in which persons are morally responsible in such cases. Second, from the standpoint of institutional morality, how should society distribute the risk of harm associated with massively complex financial markets? This question is considered in the context of the home mortgage credit market. Luck egalitarianism, in particular a Dworkinian insurance scheme to allocate risks and resources relating to mortgage credit and private home ownership, offers substantial promise. (shrink)

ABSTRACT:Microfinance is often assumed to be an ethically progressive industry, but in recent years it has been the target of much ethical criticism. Microfinance institutions have been accused of using exploitative lending techniques and charging usurious interest rates; and critics even question the ability of microfinance to alleviate poverty. This article reviews recent research on the microfinance sector that addresses these ethical issues. We show how this research is relevant to a number of theoretical issues, such as how to define (...) poverty, how to understand exploitation, and how to balance financial and social goals in commercial organizations. We conclude by identifying a critical agenda for future research. (shrink)

Discussion on financial ethics increasingly includes the problem of exclusion of the poorer segments of society from the financial system and access to credit. This paper explores the ethical dimensions surrounding the concept of a human right to credit. If access to credit is directly instrumental to economic development, poverty reduction and the improved welfare of all citizens, then one can proclaim, as Nobel Prize Laureate M. Yunus has done, that it is a moral necessity to establish credit as a (...) right. Arguments both supporting and opposing the concept of a right to credit are presented. While there may be general agreement that access to financial services may provide a pathway out of poverty, granting a universal right could induce perverse effects such as overindebtedness. Bearing in mind the ultimate goal of proponents of this right as well as the potential harmful consequences, this paper offers a new perspective on the question of access to credit based on a goal-right system. (shrink)

In many Western capitalist economies, private indebtedness is pervasive, but it has received little attention from political philosophers. Economic theory emphasizes the liberating potential of debt contracts, but its picture is based on assumptions that do not always hold, especially when there is a background of structural injustice. Private debt contracts are likely to miss their liberating potential if there is deception or lack of information, if there is insufficient access to (regular forms of) credit, or if credit is overly (...) expensive. Markets for private debt can be mechanisms of structural injustice: rather than playing a neutral role, they reinforce injustices, because the failures of debt to be liberating disproportionately hit individuals in disadvantaged positions. By individualizing what are in fact structural problems, private debt can contribute to stigmatization, social exclusion and oppression. What is at stake, from a perspective of structural justice, is not only the distribution of income, but also the distribution of risk. The problems of private debt markets therefore require political attention. In addition to fighting the structural injustices that form the background condititions of private debt, it is also worth addressing private debt markets themselves. (shrink)

At the end of a thoughtful article on the future of nuclear war, Wiesner and York concluded that: "Both sides in the arms race are... confronted by the dilemma of steadily increasing military power and steadily decreasing national security. It is our considered professional judgment that this dilemma has no technical solution. If the great powers continue to look for solutions in the area of science and technology only, the result will be to worsen the situation.".

In contemporary society, private debt has substituted for other ways of financing the consumption of basic social goods like housing, education, and medical care. This is at least partially due to increased inequality, which has allowed costs to rise faster than median incomes, as well as due to stagnating public provisions. Debt-financed access to basic goods is problematic because it creates new kinds of unfreedom and undermines the value of the freedoms that the indebted do manage to keep or acquire. (...) Debt-financing qualifies freedom in this way by placing certain kinds of conditions on our acquisition and consumption of the goods that we buy. These conditions compromise the very freedom that we seek and value when acquiring and consuming these goods. It does so, first, by transferring the burden of providing basic goods from the public to private individuals, thereby further constraining those who already face the most constraints in accessing basic goods. And, second, the conditional character of debt-financed consumption undermines the value that we attach to having basic social goods. At the very least, this gives us strong reasons to want to regulate the conditions that creditors can place on debtors, at least with respect to basic social goods. Further, at best, the most desirable alternative to debt-financed consumption is the unconditional public provision of basic goods like housing, education, and medical care. (shrink)

Elizabeth Anderson exalts the transition from the aristocratic to the modern ethic of debt as one of the most significant cultural achievements of capitalism. Whereas the debitor was once forced to compromise his liberty, dignity, and equality, today the rights and freedoms of insolvents are legally protected, and disadvantaged members of the community can readily obtain credit without personal supplication. Anderson’s intuition was, until recently, widely shared. Then came the financial crisis of 2007-08 and the ensuing global recession, triggered by (...) mass defaults among “sub-prime” borrowers. Many had entered the mortgage market with no proof of income, no assets behind them, no down-payment, a chequered credit history, and a generally reduced repayment capacity. Suddenly a flurry of criticism was unleashed against the lowering of credit standards and the government programs which pressured lenders to service the poor. My aim in this paper is not to assess the democratization of credit from the point of view of economic efficiency or political prudence, but rather to provide a much needed ethical appraisal. Any number of reasons might be advanced for why a particular government policy is morally objectionable. I will concentrate on the least controversial reason conceivable: the policy violates the rights of citizens. Whether this is true of government-driven credit-democratization - specifically, whether it violates the rights of the lenders compelled to act as agents of the policy, the rights of the third parties exposed to the risks associated with the expansion of credit markets, or both – is the question that I take up here. (shrink)

Some theories of justice hold that individuals placed in fortunate circumstances through no merit or choice of their own are morally obligated to aid individuals placed in unfortunate circumstances through no fault or choice of their own. In these theories what are usually regarded as obligations of benevolence are reinterpreted as strict obligations of justice. A closely related view is that the institutions of a society should be arranged in a way that gives priority to helping people placed in unfortunate (...) circumstances through no fault or choice of their own. Any theory of this type needs a way of assessing individuals’ circumstances to determine who is fortunate and who is unfortunate. (shrink)

I owe you a dinner invitation, you owe ten years on your mortgage, and the government owes billions. We speak confidently about these cases of debt, but is that concept clear in its meaning? This book aims to clarify the concept of debt so we can find better answers to important moral and political questions. This book seeks to accomplish two things. The first is to clarify the concept of debt by examining how the word is used in language. The (...) second is to develop a general, principled account of how debts generate genuine obligations. This allows us to avoid settling each case by a bare appeal to moral intuitions, which is what we seem to currently do. It requires a close examination of many institutions, e.g. money, contract law, profit-driven finance, government fiscal operations, and central banking. To properly understand the moral and political nature of debt, we must understand how these institutions have worked, how they do work, and how they might be made to work. There have been many excellent anthropological and sociological studies of debt and its related institutions. Philosophy can contribute to the emerging discussion and help us to keep our language precise and to identify the implicit principles contained in our intuitions. (shrink)

This chapter is divided into three parts. In the first, I ask whether there is a human right to be spared extreme poverty. The answer is ‘Not necessarily’ if a human right is a legal right, and I argue that ‘human right’ either means a right in international law and associated policy, or else the term has an unacceptably wide sense. In the second section I consider microcredit as a poverty-alleviating mechanism, distinguishing between extreme and relative poverty in developing countries. (...) I argue that credit may not be a good way of alleviating extreme poverty, and that methods of collecting debt used by microcredit providers may have moral drawbacks. In the third section I consider the fit between the class of agents currently involved in offering financial services to the poor, and the class of agents recognized as duty-bearers by human rights law and policy. Unless states become highly involved in microcredit, it is not clear that microfinance providers are or can be human rights duty bearers. (shrink)

Social scientists have paid insufficient attention to the role of law in constituting the economic institutions of capitalism. Part of this neglect emanates from inadequate conceptions of the nature of law itself. Spontaneous conceptions of law and property rights that downplay the role of the state are criticized here, because they typically assume relatively small numbers of agents and underplay the complexity and uncertainty in developed capitalist systems. In developed capitalist economies, law is sustained through interaction between private agents, courts (...) and the legislative apparatus. Law is also a key institution for overcoming contracting uncertainties. It is furthermore a part of the power structure of society, and a major means by which power is exercised. This argument is illustrated by considering institutions such as property and the firm. Complex systems of law have played a crucial role in capitalist development and are also vital for developing economies. (shrink)

The authors of this book engage in essay form in a lively debate over the fundamental characteristics of legal and moral rights. They examine whether rights fundamentally protect individuals' interests or whether they instead fundamentally enable individuals to make choices. In the course of this debate the authors address many questions through which they clarify, though not finally resolve, a number of controversial present-day political debates, including those over abortion, euthanasia, and animal rights.