The claim that managers have a fiduciary duty to shareholders to run the corporation in their interests is generally supported by two arguments: that shareholders are owners of a corporation and that they have a contract or agency relation with management. The latter argument is used by Kenneth E. Goodpaster, who rejects a multi-fiduciary, stakeholder approach on the grounds that the shareholder-management relation is “ethically different” because of its fiduciary character. Both of these arguments provide an inadequate (...) basis for the fiduciary duties of officers and directors of corporations. The basis is to be found, rather, in considerations of public policy, a point that was established in the Dodd-Berle exchange of the 1930s. This conclusion also shows the inadequacy of Goodpaster’s solution to the so-called stakeholder paradox, and an alternative solution to the paradox is presented. (shrink)

The claim that managers have a fiduciary duty to shareholders to run the corporation in their interests is generally supported by two arguments: that shareholders are owners of a corporation and that they have a contract or agency relation with management. The latter argument is used by Kenneth E. Goodpaster, who rejects a multi-fiduciary, stakeholder approach on the grounds that the shareholder-management relation is “ethically different” because of its fiduciary character. Both of these arguments provide an inadequate (...) basis for the fiduciary duties of officers and directors of corporations. The basis is to be found, rather, in considerations of public policy, a point that was established in the Dodd-Berle exchange of the 1930s. This conclusion also shows the inadequacy of Goodpaster’s solution to the so-called stakeholder paradox, and an alternative solution to the paradox is presented. (shrink)

For several decades, international law has recognized certain norms such as the prohibitions against genocide, slavery, and military aggression as "jus cogens"- peremptory law which supersedes conflicting international treaties and customs. Despite widespread acceptance of the jus cogens concept, legal theorists continue to debate whether peremptory norms derive their legal authority from state consent, natural law, or the demands of international public order. Anxiety over peremptory norms' legal basis has frustrated efforts to clarify the scope and content of jus cogens, (...) as well as placing peremptory norms on a collision course with inherited notions of state sovereignty. Drawing on Immanuel Kant 's conception of fiduciary relations, this Article develops a new theory of jus cogens based on the idea that states are fiduciaries of their people. According to the fiduciary theory, peremptory norms do not stand in opposition to state sovereignty; rather, they are constitutive of state sovereign authority because all states owe their subjects a fiduciary obligation to comply with such norms. The fiduciary model of the state resolves the longstanding tension in international legal theory between peremptory norms and state sovereignty and points to discrete formal and substantive criteria for identifying peremptory norms. (shrink)

Critics attack normative ethical stakeholder theory for failing to recognize the special moral status of shareholders that justifiesthe fiduciary duties owed to them at law by managers. Stakeholder theorists reply that there is nothing morally significant about shareholders that can underwrite those fiduciary duties. I advance an argument that seeks to demonstrate both the special moral status of shareholders in a firm and the concomitant moral inadequacy of stakeholder theory. I argue that (i) if some relations morally (...) requirefiduciary duties, and (ii) the shareholder-manager relation possesses the features that make fiduciary duties morally necessary to thoserelations, then (iii) stakeholder theory is morally lacking. (shrink)

Some accounts of the fiduciary relationship place trust and autonomy at odds with one another, so that trusting a fiduciary to act on one’s behalf reduces one’s ability to be autonomous. In this chapter, we critique this view of the fiduciary relationship (particularly bilateral instances of this relationship) using contemporary work on autonomy and ‘relational autonomy’. Theories of relational autonomy emphasize the role that interpersonal trust and social relationships play in supporting or hampering one’s ability to act (...) autonomously. We argue that fiduciary relationships, understood through the lens of relational autonomy, can provide a means of enhancing, rather than diminishing, beneficiaries’ autonomy. (shrink)

Wearable self-tracking devices capture multidimensional health data and offer several advantages including new ways of facilitating research. However, they also create a conflict between individual interests of avoiding privacy harms, and collective interests of assembling and using large health data sets for public benefits. While some scholars argue for transparency and accountability mechanisms to resolve this conflict, an average user is not adequately equipped to access and process information relating to the consequences of consenting to further uses of her data. (...) As an alternative, this paper argues for fiduciary relationships, which put deliberative demands on digital health data controllers to keep the interests of their data subjects at the forefront as well as cater to the contextual nature of privacy. These deliberative requirements ensure that users can engage in collective participation and share their health data at a lower risk of privacy harms. This paper also proposes a way to balance the flexible and open-ended nature of fiduciary law with the specific nature and scope of fiduciary duties that digital health data controllers should owe to their data subjects. (shrink)

Corporations wield power in today’s economies, and political theories of the corporation argue about the legitimacy conditions of corporate power. This paper argues in favour of a double-fiduciary theory for corporations. Based on a concession theory of markets, it sees all markets as authorized by states (in the name of society), for the purpose of creating economic value, or wealth. Hence corporations, as much as non-incorporated firms, have a fiduciary duty to the state/society to create wealth, in the (...) competitive structure of the market. However, their pursuit of wealth often creates unbalanced relations of power between corporations and their stakeholders, which can at some point be classified as instances of domination. Therefore, corporations need to be subjected to a second fiduciary duty, i.e. not to dominate others in the economy. This duty is also, in the final instance, owed to the state/society. In an era when everyone can incorporate their business, states/societies can be interpreted as having, through corporate law, mandated shareholders as ‘proximate beneficiaries’, to incentivize corporations to create wealth. Now states/societies need to think about how to prevent corporations from dominating others. New mechanisms of accountability towards stakeholders and/or citizens as proximate beneficiaries are needed. Only in this way can corporations be effectively held to account for both of the fiduciary duties which characterize their normative status. (shrink)

Despite the omnipresence of the fiduciary in business organisations, there is an omission of theorisations of this legal concept within business ethics literature. This is surprising considering its widespread and embedded use, but even more so given that the presence of ethics within the fiduciary is increasingly contested ground. This article addresses both issues by theorising the fiduciary using an ontological analysis—one which subsequently helps identify a suitable ethical framework. The article argues on two grounds that the (...) ontology of the fiduciary is inherently relational; it renders the fiduciary’s implicit ontology explicit. Firstly, the fiduciary is shown to be process-oriented, indicating an open, emergent, and relational ontology at work. Secondly, historical investigation of the development of the fiduciary highlights its core relationship structure, and the interdependency and power dynamic embedded in the fiduciary are revealed. The argument is advanced that by bringing this inherent relational ontology to the fore, we can see how a relational ethical framework—the Ethics of Care—is best placed to explicate the ethics at work in the fiduciary. The article concludes with a discussion outlining how this ontological theorisation offers utility in steering future practice of the fiduciary. (shrink)

Socially responsible investing identifies the fiduciary duty and liability for financial advisors serving individual and institutional clients when consulting in the SRI space. This article first discusses the role of a fiduciary emerging from both a legal and an ethical basis. Further, the special aspects of maintaining fiduciary duty and minimizing fiduciary liability are described as they relate to SRI. A number of recommendations are discussed: legal, ethical, and practice. This study argues that prudence focuses more (...) on the process of decisions rather than their outcomes, as measured exclusively by rate of return. (shrink)

At a minimum, a fiduciary is one who is entrusted to act for the benefit of others. But as the essays in this volume indicate, fiduciary relationships can be conceived or argued to be thicker and/or more robust. In addition to a relation of trust and action on behalf of another, fiduciary relationships are often thought to include some or all of the following additions: asymmetries of power, knowledge, skill or ability; discretion or reasonable judgment on the (...) part of the fiduciary; loyalty of the fiduciary to the interests of the trustor, or potential beneficiary; and the ethical obligation to act in good faith, with due care, or with professional or special knowledge in advancing the interests of the trustor. Due to the vulnerability of dependents, their trust in fiduciaries, and ethical obligations of trustees to act beneficently, fiduciary relationships lie at the heart of much ethical reflection, discourse and argumentation. This is especially so for professional fields in which fiduciaries have special knowledge and skill, and consequently special powers. Yet, apart from the specialized sub-disciplines of business ethics, legal ethics and medical ethics, fiduciary roles and relationships have not received much scrutiny and discussion in philosophy. In our view, this deficiency is best remedied by treating fiduciary ethics as a more general sub-field within ethics and deserving of attention in its own right. (shrink)

Conflicts of interest serve as a cipher for a radical rupture in the Flexnerian paradigm of medicine, and they can only be addressed if we recognize that health care is now practiced by institutions, not just individual physicians. By showing how "appropriate utilization of services" or "that which is medically indicated" is a function of socioeconomic factors related to institutional responsibilities, I point toward an administrative and organizational ethic as a needed component for addressing conflicts of interest. The argument is (...) developed by reviewing three important books. First, I consider Mark Rodwin's attempt to configure the economic structures of medicine so that classical fiduciary and scientific ideals can be fostered. Second, I consider E. Haavi Morreim's attempt to modify the classical ideals in order to account for new economic realities. Finally, by considering essays in a recent volume on conflicts of interest edited by Spece, Shimm, and Buchanan, I argue for a constructive dialectic between the approaches of Rodwin and Morreim. In order to properly address conflicts of interest, there must be a radical reassessment of medicine that accounts for the interrelation between scientific, ethical, and economic concerns. Until institutions come into view and professional ethics is developed to account for their role, legitimate interests and obligations of diverse parties cannot be harmonized. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Guide to Personal Knowledge: The Philosophy of Michael Polanyi: Tacit Knowledge, Emergence and the Fiduciary Program by Dániel Paksi and Mihály HéderAlessio TartaroPAKSI, Dániel and Mihály Héder. Guide to Personal Knowledge: The Philosophy of Michael Polanyi: Tacit Knowledge, Emergence and the Fiduciary Program. Wilmington, Del.: Vernon Press, 2022. xxiii + 209 pp. Cloth, $65.00Famous for the concept of "tacit knowledge," Polanyi is a figure who looms (...) over twentieth-century philosophy without ever establishing himself as one of its major protagonists. Yet, Polanyi tackled central problems in twentieth-century Western philosophy and offered [End Page 358] insightful and original analyses thereof. In Personal Knowledge, Polanyi articulates ideas about metaphysics, mathematics, evolution, philosophy and sociology of science, epistemology, philosophy of language, political theory, theology, and more. The richness of the contents, but also their deep unity, make Polanyi's work a unique piece in the philosophical landscape of his time, full of fruitful insights that are still relevant nowadays.Guide to Personal Knowledge, written by two of the leading experts on Polanyi's philosophy, deserves the merit of providing an accessible introduction to this complex work. The book is divided into thirteen chapters, each corresponding to the respective chapter of Personal Knowledge. In each chapter, Paksi and Héder clearly explain Polanyi's main ideas, presenting them in the same order as they appear in Personal Knowledge. The chapters are introduced by a "Goals of the chapter" section that provides a series of key points, where the authors summarize Polanyi's objectives in the corresponding chapter of Personal Knowledge.The Guide is interspersed with many direct quotations from Personal Knowledge that allow the reader to link the Guide to the original text. The use of figures and tables illuminates even the most complex concepts, such as "tacit integration" and the difference between "random and ordered systems." The Guide is enriched by twenty-five boxes that provide information on ideas, authors, and concepts directly or indirectly referenced by Polanyi in Personal Knowledge. These boxes are a valuable supplement. In some cases, they offer insight into contemporary events, theories, and scholars to which Polanyi alludes but that he does not elaborate on, for example, about the role of the Michelson-Morley experiments in Einstein's development of the theory of relativity. In other cases, boxes develop a comparison between Polanyi's ideas and related philosophical figures, such as Thomas Kuhn and Samuel Alexander. Thanks to the boxes, the reader gains a richer and more complete view of Polanyi's thought.In the preface, Paksi and Héder preliminarily introduce some key concepts for understanding Polanyi's work, including "objectivity," "trust" and "fiduciary program," "tacit knowledge," "intellectual passions," "deceptive substitution," "moral inversion," "operational principles," "logic of achievement," and "emergence." Their analysis always proves faithful to Polanyi's thought, and the authors show how these concepts are interrelated and constitute the pillars of Personal Knowledge's argumentative structure. Other equally crucial concepts in Polanyi's work, for example, "commitment," "indwelling," "tradition," "conviviality," "anthropogenesis," "ultrabiology," are not introduced in the preface, but they are explored in depth in the respective chapters.The thirteen chapters of the book recapitulate in detail the main thematic segments of Personal Knowledge. The critique of objectivism and positivist views of science is explained and analyzed in chapters 1 to 4. This critique is articulated on several levels. Polanyi first criticizes [End Page 359] objectivism because it attempts to remove the personal element from scientific knowledge in order to pursue ever higher degrees of formalism, neutrality, and impersonality. Polanyi asserts, however, that the personal element is irreducible, and then proceeds to demonstrate how it operates: in the evaluation of probability statements (chapter 2), in the appreciation of ordered patterns (chapter 3), and in the practice of skills (chapter 4). The ineliminability of the personal element shows that objectivism is false. Paksi and Héder brilliantly retrace the train of thought that leads Polanyi to this conclusion.The second theme that runs across Personal Knowledge concerns the tacit foundation of human intellectual abilities and, consequently, of science and society. In chapter 6, the authors follow Polanyi's disparate arguments about animal intelligence, human... (shrink)

In his 2014 paper entitled “Reason, Rationality and Fiduciary Duty”, Lydenberg ventures into the field of the moral and political philosophy dealing with distributive justice in search of fresh perspectives on fiduciary duty. Simply by doing this, Lydenberg makes the very important contribution of drawing a little more attention to the potential that this huge field of study might have in relation to understanding socially responsible investment. There are however difficulties with Lydenberg’s paper. I describe three in particular (...) that I believe warrant critical attention. The first emerges out of Lydenberg’s treatment of the central concepts of reasonableness and rationality. The second lies in his apparent suggestion that at some earlier time fiduciary duty was somehow more generally other-considering than it is today. And finally, the third is associated with the place that impartiality occupies in Lydenberg’s storyline, and the implications of this in terms of his call for a reconciliation between reasonableness and rationality. This critical scrutiny clarifies theoretical and practical implications of the transition Lydenberg is suggesting. In doing this, it makes the realization that what Lydenberg is attempting is more than likely nothing short of resolving “The fundamental problem of ethics and politics” in the specific context of fiduciary action. (shrink)

Public professionals do not only serve their clients but also – by doing so – the public at large. The state often has a direct grip on their work, through financing, regulation or otherwise. This leads to a deeply felt conflict in contexts where authoritarian, illiberal leadership is widespread. Public professionals then face a moral dilemma: should they resist illiberal pressures by the state, or continue to obey their states? The paper's main question is how this practical dilemma for public (...) professionals should be interpreted. First, it presents a framework to interpret the professional situation, characterising it as a fiduciary relation, which we can understand through the lens of Thomas Hobbes's theory of authorisation/representation. On this theoretical basis, the paper discusses three competing models for understanding the public professional's predicament. The teleological model revolves around loyalty to one's clients. The conscientious professional model which is about loyalty to one's own moral convictions. The constitutional model is about loyalty to constitutional principles. The paper argues in favour of the constitutional model. Standing up against illiberal pressures is best interpreted as a matter of loyalty to the principles of constitutionality that underly the fiduciary relation between citizens and their states. (shrink)

The philosophies of education serve as the guide of the teachers in handling the teaching-learning process. However, a belief will remain as a belief unless it is practiced. This study aimed to find the relationship between the philosophical beliefs and practices of the 30 teachers of the schools in San Roque, Mabini, Bohol - San Roque Elementary School and San Roque National High School, S.Y. 2019-2020. The study utilized a quantitative method descriptive survey research design. The research instrument used was (...) a self-constructed questionnaire in which the reliability was tested by a Cronbach’s Alpha using Statistical Package for the Social Science (SPSS) software. Simple percentage and weighted mean were some of the statistical treatments used. Kendall’s tau_b, a non-parametric test, was used to determine the correlation between philosophical beliefs and their equivalent pedagogical practices. All of the statistical treatments were also run using the SPSS software. Further, the researcher assured the proper observation of the research ethics protocol. Based on the results, the philosophies of Progressivism (3.63) and Perennialism (3.31) were the most and least prevailing philosophical beliefs, respectively. On the other hand, the most and least prevailing philosophies practiced are Progressivism (3.69) and Essentialism (3.19), respectively. Moreover, research findings revealed that there was a significant relationship between the philosophical beliefs of teachers and their pedagogical practices. In conclusion, this study claims that teachers’ pedagogical practices are dependent to their philosophical beliefs; and as the teachers believed on a particular philosophy of education, they practice it accordingly to the extent of their adherence to the belief. (shrink)

Barbarism was by no means unique to the past 100 years, Jonathan Glover tells us, but ''it is still right that much of 20th-century history has been a very unpleasant surprise.'' This was the century of Passchendaele, Dresden, Nanking, Nagasaki and Rwanda; of the Final Solution, the gulag, the Great Leap Forward, Year Zero and ethnic cleansing -- names that stand for killings in the six and seven figures and for suffering beyond comprehension. The technological progress that inspired the optimism (...) of the Victorians turned out also to multiply the effects of old-fashioned evil and criminal stupidity. (shrink)

It is practically inevitable that even the best-intentioned public officials occasionally inflict unjust harm on people who should not have to suffer it. They mistakenly arrest innocent suspects, and convict innocent defendants. They erroneously adopt and enforce criminal laws that unduly restrict our freedom. They vote for, implement, and enforce tax laws that unfairly burden some citizens. And yet it is widely assumed that, as long as such officials act in good faith, and follow certain institutional rules, we aren’t permitted (...) to protect the innocent victims of their mistakes by inflicting defensive harm on the officials. As a result, those victims may have to suffer injustices that we could, in principle, prevent. This is so even though, if a private person imposed similarly unjust harm, and did so on the basis of mistaken judgments that were equally in good faith, and just as reliable as the institutional judgments guiding the official, we could permissibly harm that person to defend the victim. This essay considers whether, and how, this asymmetric treatment can be justified. After some ground-clearing that sharpens the question, it briefly considers the dominant explanation offered by political philosophers, which focuses on how resisting official mistakes would impact innocent third parties (most obviously, one’s fellow citizens). Finding these explanations wanting, the essay turns to a less frequently considered alternative: under certain conditions, defending the innocent victim against the official’s mistake is unfair to the official who would be harmed in the process. In particular, if officials act for their subjects (in a quite specific sense), then we may, as a matter of fairness, be barred from harming the officials to protect those subjects from (some of) the unjust harms that officials erroneously inflict. This account chimes with familiar views in the history of political thought that take legitimate political power to be held in trust for the people, and legitimate governments to stand in fiduciary relations to their subjects. It explains why officials may in principle have special moral protection that private persons usually lack, and why we may have to put up with officials’ mistakes even if they inflict injustice on innocent persons. But it also reveals how demanding the conditions are under which officials have such protection, and why many existing legal and political institutions lack the legitimacy, and their officials the special moral protection against defensive harm, that they purport to have. (shrink)

Though we cherish freedom and equality, there are human relations we commonly take to be morally permissible despite the fact that they essentially involve an inequality specifically of freedom, i.e., parental and fiduciary relations. In this article, I argue that the morality of these relations is best understood through a very old and dangerous concept, the concept of status. Despite their historic and continuing abuses, status relations are alive and well today, I argue, because some (...) of them are necessary. We must therefore carefully specify the conditions in which such status relations may morally obtain, as well as the duties of virtue and duties of right to which all parties are subject when it does (including a duty of care) to clearly articulate the ways in which these putatively moral status relations that essentially involve an asymmetry of autonomy (status relations) can go well or badly even within the context of the Kantian tradition from which our current legal and social practices arose. To this end, I offer Kant's own concept of status as a promising one because in Kant's theory, status is a nexus of virtue and right that is reducible to neither property nor contract but akin to each in familiar ways. Once status is admitted as an alternative to property and contract, status may be extended beyond Kant's domestic paradigm, most perspicuously to institutional ethics. In this article, I sketch a status-based theory of stakeholding that locates environmental impact, institutional oppression, and other significant features of our moral landscape within a Kantian framework of duties rich enough to more accurately characterize the complexities of stakeholding than current tradition has allowed. (shrink)

Presents the fundamental ideas of Indian thinkers that have shaped the mind of Indian from 1770 to the post-modern era in the middle of 20th century in India. Lists the most Indian influential figures in the field of philosophy, political theory, activicism such as Rabindranath Tagore, Ram Mohan Roy, Swami Vivekananda, and Mohandas Karamchand Gandhi.

In this Response to Hasko von Kriegstein, I defend several claims, including that the publicly-traded corporation and its assets are unowned; that managers may stand in fiduciary relations to shareholders that do not require managers to maximize shareholder wealth; and that the rights of a shareholder and of the owner of a privately-held corporation may differ fundamentally.

Most contemporary discussions of institutional ethics take contractual rather than fiduciary relations as the model for describing moralresponsibilities, leaving institutional boards with few resources to support and critique their moral behavior. I argue that institutional fiduciary relationships cannot be characterized as contracts, either in fact or function. Each form of relationship privileges a different set of behaviors and values that are far from interchangeable.

Is parental control over children best understood in terms of trusteeship or similar fiduciary obligations? This essay contemplates the elements of legal trusts and fiduciarity as they might relate to the moral relationship between children and parents. Though many accounts of upbringing advocate parent-child relationship models with structural resemblance to trust-like relationships, it is unclear who grants moral trusts, how trustees are actually selected, or how to identify proper beneficiaries. By considering these and other classical elements of relationships of (...) trust, this essay seeks to clarify and explore the trust model’s role, if any, in understanding children’s rights. Such exploration raises the possibility that another element of common law, the duty to rescue, may serve to enhance the trust model of children’s rights. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility (CSR), meant as an extended model of corporate governance of the firm. It focuses on justification according to the contractarian point of view (leaving compliance and implementation problems to a related article, [Sacconi 2004b, forthcoming in the Journal of Business Ethics]). It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the (...) firm’s stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

The common view is that insider trading is always unethical and illegal. But such is not the case. Some forms of insider trading are legal. Furthermore, applying ethical principles to insider trading causes one to conclude that it is also sometimes ethical. This paper attempts to get past the hype, the press reports, and the political grandstanding to get to the truth of the matter. The author applies two sets of ethical principles – utilitarianism and rights theory – in an (...) attempt to determine when, and in what circumstances, insider trading is ethical. The views of Henry Manne, an early proponent of insider trading, are critically examined, as are the major arguments against insider trading. Is insider trading good for the company if it is used as a form of executive compensation which makes it possible to pay lower salaries than would otherwise be the case? Does insider trading cause the stock market to work more efficiently? If insider trading does increase efficiency, is that sufficient to call for its total legalization, or are there other things to be considered? Several arguments against insider trading have been put forth over the last few decades but there are problems with all of them. One of the main arguments is the fairness argument. The problem with this argument is that different people have different definitions of unfairness. A closely related argument is the level playing field argument, which advocates wider dissemination of information so that it is less asymmetric. One problem with the level playing field argument is that it is better applied to sporting competitions than to trading in information. Some economists argue that forcing the disclosure of nonpublic information can actually result in more harm than good and must necessarily involve the violation of property rights. Other arguments examined in this chapter include the fiduciary duty argument, the problem of outside traders, the misappropriation doctrine and the restrictions that insider trading laws place on freedom of speech and press. The article concludes by setting forth some principles or guidelines to determine when insider trading should be punished and when it should not. (shrink)

Once a term used primarily by moral philosophers, “moral distress” is increasingly used by health professionals to name experiences of frustration and failure in fulfilling moral obligations inherent to their fiduciary relationship with the public. Although such challenges have always been present, as has discord regarding the right thing to do in particular situations, there is a radical change in the degree and intensity of moral distress being expressed. Has the plight of professionals in healthcare practice changed? “Plight” encompasses (...) not only the act of pledging, but that of predicament and peril. The author claims that health professionals are increasingly put in peril by healthcare reform that undermines their efficacy and jeopardizes ethical engagement with those in their care. The re-engineering of healthcare to give precedence to corporate and commercial values and strategies of commodification, service rationing, streamlining, and measuring of “efficiency,” is literally demoralizing health professionals. Healthcare practice needs to be grounded in a capacity for compassion and empathy, as is evident in standards of practice and codes of ethics, and in the understanding of what it means to be a professional. Such grounding allows for humane response to the availability of unprecedented advances in biotechnological treatments, for genuine dialogue and the raising of difficult, necessary ethical questions, and for the mutual support of health professionals themselves. If healthcare environments are not understood as moral communities but rather as simulated marketplaces, then health professionals’ moral agency is diminished and their vulnerability to moral distress is exacerbated. Research in moral distress and relational ethics is used to support this claim. (shrink)

This second edition of the ground-breaking Ethics in Finance is an up-to-date, valuable addition to the emerging field of finance ethics. Citing examples of the scandals that have shaken public confidence in Wall Street, John R. Boatright explains the importance of ethics in the operation of financial markets and institutions and in the conduct of finance professionals." "Focusing on standards of fairness in market transactions and the duties of fiduciaries and agents in financial relationships, the author introduces a broad range (...) of practical issues related to financial markets, the financial services industry, investment decision making, and corporate financial management. In addition to the topics considered in the first edition, including unethical sales practices, insider trading, the abuse of bankruptcy, and hostile takeovers, the second edition of Ethics in Finance has a broadened scope, incorporating new discussions of issues in mutual funds, conflict of interest, and the financial theory of the firm." "This timely and comprehensive book provides an analysis of ethical issues in finance, suitable for students of finance and business ethics as well as anyone involved in financial activities."--Jacket. (shrink)

Managers have a unique fiduciary responsibility to shareholders of a firm that implies a set of ethical obligations. At a minimum, managers are required to protect shareholder’s interests when other stakeholders are unaffected by their decision. This ethical imperative has been established in the literature. In cases of conflicts of interest between managers and shareholders, the board of directors of the firm has an ethical obligation to shareholders. The structure of the board can affect its ability to fulfill this (...) obligation. Two specific cases where managerial actions have been argued to be unethical are the adoption of classified boards and poison pills. In this study, we empirically analyze the role of board structure in protecting shareholder rights in the specific case of antitakeover provisions. We test this question on a sample of firms whose shareholders have voted to remove antitakeover provisions and find that independent, focused boards are more likely to accede to shareholder resolutions than are less independent boards. Board size is also important and related to other board structures. We draw implications of this finding for future research on the ethics of board governance.What’s really needed is a change in mindset—one that fosters not only a culture of compliance but also a company-wide environment that fosters ethical behavior and decision-making.—William H. Donaldson, SEC Chairman (2004). (shrink)

Entering into a trust relation enables you to do things you couldn't otherwise do. As trusted, you can help others do or believe what they have reason to do or believe. As trusting, you can get such help when more private resources run out. I begin by contrasting the way you address someone when you intend him to trust your testimony or advice with the way you might address him if you wanted merely to give him evidence that what you (...) assert is true or to get him to do something. In inviting someone to trust you, you intend to give him a reason by a Gricean mechanism: on the basis of his recognition simply that that is what you intend. Giving and getting reasons in this way rests, I argue, on the addressee's exercise of a distinctive species of rationality: the capacity to trust where and only where it makes sense to trust. I call this capacity fiduciary reason. I explain how an agent's capacity for fiduciary reason functions as an irreducible source both of epistemic reasons and of practical---prudential and moral---reasons. I then apply my conception of trust-based reasons to two debates in the theory of agency. First, I argue that the inclusion of an agent's fiduciary reason in a conception of his practical rationality vindicates an internalist view of practical reasons that accommodates the guiding insight of externalist views: that it always makes sense to think a gap might emerge between your motivational susceptibilities and what you have reason to do. I construe this gap as separating the motives you can reach by a private deliberation from those you can reach only by trusting another's advice. Second, I argue that fiduciary reason plays a crucial role in the diachronic species of practical rationality you manifest when you merely follow through on one of your own intentions. It is no more reasonable to follow through on an intention formed by an untrustworthy earlier self of yours, I argue, than it is to act on the advice of an untrustworthy interlocutor. (shrink)

The capacity to collect and analyse data is growing exponentially. Referred to as ‘Big Data’, this scientific, social and technological trend has helped create destabilising amounts of information, which can challenge accepted social and ethical norms. Big Data remains a fuzzy idea, emerging across social, scientific, and business contexts sometimes seemingly related only by the gigantic size of the datasets being considered. As is often the case with the cutting edge of scientific and technological progress, understanding of the ethical implications (...) of Big Data lags behind. In order to bridge such a gap, this article systematically and comprehensively analyses academic literature concerning the ethical implications of Big Data, providing a watershed for future ethical investigations and regulations. Particular attention is paid to biomedical Big Data due to the inherent sensitivity of medical information. By means of a meta-analysis of the literature, a thematic narrative is provided to guide ethicists, data scientists, regulators and other stakeholders through what is already known or hypothesised about the ethical risks of this emerging and innovative phenomenon. Five key areas of concern are identified: informed consent, privacy, ownership, epistemology and objectivity, and ‘Big Data Divides’ created between those who have or lack the necessary resources to analyse increasingly large datasets. Critical gaps in the treatment of these themes are identified with suggestions for future research. Six additional areas of concern are then suggested which, although related have not yet attracted extensive debate in the existing literature. It is argued that they will require much closer scrutiny in the immediate future: the dangers of ignoring group-level ethical harms; the importance of epistemology in assessing the ethics of Big Data; the changing nature of fiduciary relationships that become increasingly data saturated; the need to distinguish between ‘academic’ and ‘commercial’ Big Data practices in terms of potential harm to data subjects; future problems with ownership of intellectual property generated from analysis of aggregated datasets; and the difficulty of providing meaningful access rights to individual data subjects that lack necessary resources. Considered together, these eleven themes provide a thorough critical framework to guide ethical assessment and governance of emerging Big Data practices. (shrink)

This paper is an examination of the role of trust in the previous seven papers in this issue of the Journal. Trust and trustworthiness are briefly characterized; their importance in business itself and in business ethics is briefly described; and each paper is discussed in relation to how trust figures in the ethical issues it raises. The overall discussion brings out the need for further work on the nature of trust and on the elements in business, such as transparency, that (...) apparently help to sustain it. (shrink)

The paper focuses on concerns and legal challenges brought on by the use of algorithms. A particular class of algorithms that augment or replace analysis and decision-making by humans, i.e. data analytics and machine learning, is under scrutiny. Taking into account Balkin’s work on “the laws of an algorithmic society”, attention is drawn to obligations of transparency, matters of due process, and accountability. This US-centric analysis on drawbacks and loopholes of current legal systems is complemented with the analysis of norms (...) and principles of the EU data protection law, or “GDPR”. The aim is twofold. On the one hand, the intent is to shed light on some crucial differences between the US and EU law on the regulation of algorithmic operators, both public and private. Whereas, in the USA, scholars debate whether and to what extent new duties and responsibilities of algorithmic operators, e.g. information fiduciaries, have to amend the current framework of self-regulation and light government—as shown by the White House’s Office of Science and Technology Policy report from November 2016—in EU law much of the new duties and responsibilities of algorithmic operators have been passed upon them as data controllers. Whether such approaches will successfully tackle the normative challenges of the algorithmic society is, on the other hand, an open issue that will likely represent the main topic of debate over the next years. Disagreement may concern: the terms framing the legal question in e.g. statistical purposes of the data processing; how such terms are related to each other in legal reasoning ; and legal hard cases that will increasingly have to do with the principles that are at stake also but not only in data protection. By entrusting such legal hard cases to algorithms, or some sort of smart artificial agent, humans still bear full responsibility for the judgment of what is socially, ethically, and legally “plain” and “hard” in social affairs. The balance between delegation of decisions to algorithms and non-delegation will be the leitmotiv of the algorithmic society. Since the devil is in the detail, the current paper is devoted to some of them. (shrink)

n this paper I venture to bring out and disclose an element of faith at the heart of the kind of critical inquiry that we encourage and foster in philosophy with children. It is clearly distinct from doubt, the kind of doubt we customarily associate with what makes critical thinking critical, but, properly understood, it grants to doubt and critical reflection essential roles in the process. What I mean by “faith” in this connection may be understood as trust and confidence (...) in the process of thoughtful inquiry. Our coming to recognize the centrality of faith in this sense within philosophy with children may entail some changes in our thinking about where philosophy with children fits into the larger cultural movements of our time and as well about how involvement in philosophy with children bears upon the beliefs and traditions of the sub-cultural backgrounds of children who participate. I should make clear that my perspective is informed by the philosophical insights of Michael Polanyi into what he calls the tacit dimension of all kinds of knowing, even the most rigorous and formal, especially considering knowing as an ongoing process. Polanyi focuses a great deal on what he speaks of as “the fiduciary [i.e., faith] coefficient of our knowing” – indeed, of all explicit propositions we may happen to entertain or hold. He takes as his paradigm of knowing the anticipation of an approaching discovery, whether in the natural sciences or in other areas. I will also relate my discussion to the well-known controversy between W. K. Clifford’s “The Ethics of Belief” and William James’ “The Will to Believe.” I contend that James’ most important point in that controversy has much more to do with general epistemology than philosophy of religion. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Organizational Ethics and Health Care: Expanding Bioethics to the Institutional Arena **Laura Jane Bishop (bio), M. Nichelle Cherry (bio), and Martina Darragh* (bio)In 1995, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) expanded its patient rights standards to include requirements for assuring that hospital business practices would be ethical. Renamed “Patient Rights and Organization Ethics,” these standards are based on the realization that a hospital’s obligation to its (...) patients is derived from two relationships: the patient-provider relationship governed by “clinical ethics,” and the customer-supplier relationship governed by “business ethics.” “[This] boundary between ‘clinical’ ethics and ‘business’ ethics is not clear and in many cases is nonexistent. While marketing and admission practices are seen as issues related to ‘business’ ethics, they can lead to unneeded admissions or demand for unneeded services, both of which can unnecessarily expose the patient to the risk of side effects or complications. Likewise, underutilization of needed services is likely to lead to less than optimal health outcomes” (I. Schyve 1996, p. 17). “These new standards arose out of well-publicized concerns about abuses in which patients were admitted to hospitals unnecessarily and were discharged or transferred only after their insurance expired” (I. Schyve 1996, pp. 15–16).These abuses also sparked eloquent protests against threats to patient well-being and to the nature of the patient-provider relationship in the bioethics literature. The fiduciary responsibility of the provider to inform and to protect the patient was fragmented by insurer business practices such as gag clauses and economic credentialing of providers (VII. Scope Note 31, 1996). The background role that the institution plays, though poorly articulated historically, has been brought sharply into focus by the explosive growth of the managed practice of medicine. The context of medical ethics is no longer limited to the resolution of individual cases, but instead encompasses the adoption of institutional structures to protect and promote patient welfare (IV. Emanuel 1995, p. 335). In this new configuration, the institution and the providers are co-fiduciaries for populations [End Page 189] of patients, and the medicine that is practiced is “appropriately economically disciplined.” The expression “My patient always comes first” is no longer “... intellectually serious or morally responsible.” But, “... to be sure, both conceptually and in practice, being an economically disciplined fiduciary professional or institution is ethically unstable.... The task is to identify the boundaries outside of which institutional policy and behavior will not count as an ethically defensible form of being... [a] fiduciary.” (IV. McCullough 1997, pp. 143–44). This process of delimiting and enforcing boundaries requires the development of “... a language for talking about the ethical values of the organization. If such a language does not exist, discussions about ethics become cumbersome and unlikely to occur” (IV. Cleveland Clinic Foundation 1998, p. 2).As with bioethics generally, the literature addressing organizational ethics is multidisciplinary. JCAHO’s compliance guide for its revised standards, Ethical Issues and Patient Rights, draws on a wealth of ideas from both clinical ethics and business ethics. This is often an awkward alliance. “Because the study of organizational ethics is in its infancy compared to other areas of healthcare ethics, discussions about it often seem like hot air with no palpable payoff” (I. Boyle 1998, p. 2). The fact that “... there is an ancient history that reflects widespread doubt about the moral probity of business” (II. Frederick 1995, p. 209) does not help. To begin, “Aristotle had rude things to say about business” (II. Jackson 1998, p. 401). A brief review of introductions to several of the business ethics textbooks cited in this bibliography reveals that a rebuttal of “business ethics as an oxymoron” is the standard opening paragraph. This stigma is unfounded, and “increased stability” has characterized the state of business ethics literature during the 1990s (II. Beauchamp and Bowie 1997, p. ix). Significant attention has been given to elaborating two often overlapping theories—stakeholder and social contractarian.Originating in the 1960s as a pun on “stockholder,” proponents of stakeholder theory claim that a corporation’s fiduciary responsibility extends beyond increasing its profitability to protecting the rights of individuals or groups affected by its actions. Popular as a strategic planning tool in the... (shrink)

Abstract:International business norms do not exist. Content and development of such norms is a significant research question for business ethics scholarship. Any norms must address difficult practical and moral problems facing multinational enterprises. The author’s thesis is as follows. A key circumstance is that international relations remain a Hobbesian state of nature. The theoretical solution of a global sovereignty for norm formulation and enforcement is unlikely. The business ethics literature proposes other insightful but theoretical and conflicting solutions to abstract (...) wealth-responsibility and universalism-relativism controversies. Theoretical convergence seems unlikely. Evolution of multiple international policy regimes fragmented by policy arena is more probable. Regimes will typically be neither morals by agreement nor a morality of the marketplace. Regime development can occur in various other ways. Moral leadership, by firms, stakeholders, nongovernmental organizations or governments, can be a vital force. Formal ethical theories can inform and guide such leadership initiatives. This process perspective is applied to several recent case examples cited here as supporting evidence: anti-corruption, labor, environmental, human rights, and fiduciary responsibility initiatives. (shrink)

:International business norms do not exist. Content and development of such norms is a significant research question for business ethics scholarship. Any norms must address difficult practical and moral problems facing multinational enterprises. The author’s thesis is as follows. A key circumstance is that international relations remain a Hobbesian state of nature. The theoretical solution of a global sovereignty for norm formulation and enforcement is unlikely. The business ethics literature proposes other insightful but theoretical and conflicting solutions to abstract (...) wealth-responsibility and universalism-relativism controversies. Theoretical convergence seems unlikely. Evolution of multiple international policy regimes fragmented by policy arena is more probable. Regimes will typically be neither morals by agreement nor a morality of the marketplace. Regime development can occur in various other ways. Moral leadership, by firms, stakeholders, nongovernmental organizations or governments, can be a vital force. Formal ethical theories can inform and guide such leadership initiatives. This process perspective is applied to several recent case examples cited here as supporting evidence: anti-corruption, labor, environmental, human rights, and fiduciary responsibility initiatives. (shrink)

For the past several decades, jurists have invested significant efforts in developing the law in general—and private law in particular—in terms of pluralism. However, the conceptualization of corporate law and governance according to pluralist principles rarely exists. This Essay is the first in the legal literature to address this deficiency by providing a unique pluralist theory of corporate governance regimes. It distinguishes between the plurality of corporate law’s sources, values, and principles, and discusses the implications for governance. Moreover, based on (...) the social systems’ thinking and the framework of complexity, this Essay provides theoretical grounds for skepticism about any policies or structures applicable to all times and contexts. Therefore, rather than perceiving corporate governance as being identically applicable to all corporations, the law must meet the challenge of complexity by designing governance arrangements following a firm-specific perspective. Furthermore, I argue that in conditions of complexity, corporate governance eco-systems should be designed with a firm-specific view that incorporates the effect of the corporation participants’ heterogeneity, the heterogeneity of its internal power relations, and the heterogeneity of industries and markets. These novel arguments have profound implications for redesigning fundamental legal doctrines—such as fiduciary duties of controlling shareholders, regulation of related party transactions, the officers’ duty of care, and the company purpose. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. Whereas, justificatory issues have been discussed in a related paper, in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation as a way to implement the social contract (...) on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation, the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm. (shrink)

This essay examines the fundamental role of veterinarians in companion animal practice by developing the idea of veterinarians as strong advocates for their nonhuman animal patients. While the practitioner-patient relationship has been explored extensively in medical ethics, the relation between practitioner and animal patient has received relatively less attention in the expanding but still young field of veterinary ethics. Over recent decades, social and professional ethical perspectives on human-animal relationships have undergone major change. Today, the essential role of veterinarians is (...) not entirely clear. Furthermore, veterinarians routinely face pressure, often insidious, to refrain from pursuing their patients’ vital interests. In exploring the concept of strong patient advocacy, this essay investigates the increasingly common suggestion that veterinarians have ‘primary obligation’ and ‘first allegiance’ to their animal patients rather than to other parties, such as their clients or employers. The related concept of a fiduciary duty, which is sometimes encountered in medical ethics, is similarly explored as it applies to companion animal practice. The resultant idea of a strong patient advocate places companion animal veterinarians conceptually and ethically close to human health professionals, not least pediatricians. (shrink)

Many bioethicists promote and defend the ‘bedside rationing paradigm’; a pertinent example is the recent publication by Morten Magelssen and colleagues, in which they attack my previous criticism in the field. The present response focuses on what I consider to be the main side-effects of the ‘bedside rationing paradigm’: the ignorance towards intentions and societal roles, the crumbling of political practice, and the fiduciary loss in the physician–patient relationship. Further, I claim that these side effects are related to certain (...) underlying presumptions, such as the conception of fairness as equivalent with distributive justice and the belief in the presence of universally valid, context-independent moral principles. These presumptions are characteristics of modernist ethics; thus, the ‘bedside rationing paradigm’ illustrates some fundamental shortcomings of this moral theory. I argue that an ethics of virtue is better suited to the practice of medicine as well as to the rationing dilemmas. (shrink)

With the recent rash of mergers and friendly and unfriendly takeovers, two important issues have not received sufficient attention as questionable ethical practices. One has to do with the rights of employees affected in mergers and acquisitions and the second concerns the responsibilities of shareholders during these activities. Although employees are drastically affected by a merger or an acquisition because in almost every case a number of jobs are shifted or even eliminated, employees at all levels are usually the last (...) to find out about a merger transaction and have no part in the takeover decision. Second, if shareholders are the fiduciary beneficiaries of mergers and acquisitions, then it would appear that they have some responsibilities or obligations attached to these benefits, but little is said about such responsibilities. In this essay I shall analyze these two ethical issues, and at the end of the paper I shall suggest how they are related. (shrink)

High-profile corporate scandals earlier in this decade provoked outrage and legislative action; however, corporate executive-level ethical lapses continue to come to light. This article examines the work of Professor Dunfee and his coauthors on corruption, ethical leadership, and social contracts theory, and relates that literature to corrupt activities by corporate executives. Corruption is defined broadly to encompass executive self-dealing, which harms their firms. The specific example of stock options backdating is used to show the harmful impact on shareholders and the (...) lack of managerial integrity though consequentialist, deontological, and legal analysis, as well as a critique of the practice using social contracts principles. Ultimately, this article utilizes the insights of Dunfee and his coauthors, and the lessons from the backdating example, to propose a framework aimed at improving corporate governance and preventing future executive corruption. The framework includes a strategy of identification and prevention, employing detection and eradication mechanisms, and institutional learning from past instances of corporate corruption. (shrink)

Abraham’s “leadership by example” provides a template for business leaders to implement a tone at the top based on a balance of tzedek (righteousness) and mishpat (legal judgement). The former expresses the generosity of spirit required of leaders, while the latter expresses the sound judgement in conformity with both ethics and enacted law. We relate the two constructs to several contemporary theories of justice and jurisprudence. We also relate the development of Abrahamic Justice in the Jewish tradition from antiquity through (...) Maimonides in the middle ages. We draw insight from this tradition to answer a contemporary business ethics question: Do corporate managers violate their fiduciary duty to shareholders if they refuse to engage in legal tax avoidance? (shrink)