Applying evidence from recently available public information on Enron, I defined Enron’s culture as one rooted in agency theory by asserting that Enron’s members were predominantly agency-reasoning individuals. I then identified conditions present at Enron’s collapse: a strong agency culture with collectively non-compliant norms, a munificent rare-failure environment, and new hires with little business ethics training. Turning to four possible antidotes (selection, objectivist integrity, integrity capacity, and stewardship reasoning) to an agency culture under these conditions, (...) I argued that the currently available ethics literature would have made little difference toward averting Enron’s collapse if any of the recommendations from the relevant ethics literature had been implemented. I conclude by identifying new directions for business ethics literature in order to make it more implementable under the conditions identified at Enron. Essentially, we need a way to clearly determine (1) the difference between connivance and commitment, (2) what is meant by balance with regard to the multiple dimensions of ethics and legal theories, and (3) the proper balance between agency and stewardship reasoning. (shrink)

The purpose of this article is to examine two important issues concerning the agency theory of causality: the charge of anthropomorphism and the relation of simultaneous causation. After a brief outline of the agency theory, sections 2–4 contain the refutation of the three main forms in which the charge of anthropomorphism is to be found in the literature. It will appear that it is necessary to distinguish between the subjective and the objective aspect of the concept (...) of causation. This will lead, in section 5, to contrast two kinds of anthropomorphism, one which has been rightly rejected by modern science and one which is fully compatible with the objective reality of the causal processes. Finally, section 6 will apply the preceding considerations to simultaneous causation. On the one hand, in a basic sense, there can be no simultaneous causal relations. On the other hand, simultaneous causation arises when we consider the natural change by abstracting from the agent and from her/his projects of interven.. (shrink)

According to Streeck and Vogl, the neoliberalization of the state has been the result of political-economic developments that render the state dependent on financial markets. However, they do not explain the discursive shifts that would have been required for demoting the state to the role of an agent to bondholders. I propose to explain this shift via the performative effect of neoliberal agency theory. In 1976, Michael Jensen and William Meckling claimed that corporate managers are agents to shareholding (...) principals, which implied that their main task was the procurement of shareholder value. Agency theory subsequently prescribes a series of measures to ensure the alignment of principal and agent interests in corporations. The diffusion of agency theory, however, moved beyond corporate governance to reconfigure the state. Due to its reliance on capital markets, the state supposedly likewise becomes an agent of the investment public and should procure bondholder value. (shrink)

This study examines the influence of board independence on firm agency cost among listed firms in Bangladesh, which feature concentrated ownership and high insider representation on corporate boards. This study uses three measures of agency cost: the ‘expense ratio’, the ‘Q-free cash flow interaction’ and the ‘asset utilization ratio’. The finding of the study is that board independence can reduce the firm agency cost only under ‘asset utilization ratio’ measure of agency cost. These findings are robust (...) to several robustness tests. Furthermore, the non-linearity tests suggest that the benefit of outside independent directors is generally plausible as a factor controlling agency costs in the case of a medium level of board independence. Overall, these findings do not reject the validity of agency theory, supporting the Anglo-American orthodoxy promoting outside independent directors as good monitors. (shrink)

Agency theory involves what is known as the principal-agent problem, a topic widely discussed in economics, management, and business ethics today. It is a characteristic of nearly all modern business firms that the principals (the owners and shareholders) are not the same people as the agents (the managers who run the firms for the principals). This creates situations in which the goals of the principals may not be the same as the agents--the principals will want growth in profits (...) and stock price, while agents may want growth in salaries and positions in the hierarchy. The fourth volume in the Ruffin Series in Business, this book explores the ethical consequences of agency theory through contributions by ethicists, economists, and management theorists. (shrink)

RésuméMartin Gerwin répond ici aux critiques adressées par Andrew Ward à son article de 1987 « Causality and Agency: A Refutation of Hume». Contre la position de Hume sur l'origine de notre idée de connexion causale, Gerwin défend une théorie actantielle; il est de ceux pour qui le processus d'acquisition des concepts causaux dépend de manière cruciale de notre expérience d'être agent et non seulement spectateur. Il soutient que le processus implique un usage de l'imagination créatrice pour l'invention des (...) concepts et des hypothèses, qui aurait été exclu par les principes de Hume, mais qui s'accorde bien avec les résultats de la psychologie expérimentale. (shrink)

Ward concludes that either the natural-agency account is not a genuine alternative to Hume, because it tacitly accepts or presupposes what Hume said, or, if it is an alternative, it is not a viable one, because at the very point where it departs from Hume’s account, it asserts something “mysterious.” The gist of my reply will be to assert, first, that the position I wish to defend flatly contradicts some of Hume’s key claims, so there can be no question (...) of my having tacitly accepted them; and second, that, where Ward finds the position unacceptable, it is apparently because he has so thoroughly absorbed certain basic Humean assumptions that his arguments beg the question against any alternative to Hume. (shrink)

This book explores and critically reflects on the theory and practice of political agency in contemporary global politics. In light of the changing relationship between the state, the market and the society, it seeks to map both theoretically and empirically contemporary forms of global political agency. This book reflects on the theory and practice of political agency in contemporary global politics. More specifically, it empirically analyses a range of different forms of political agency and (...) explores their significance for understanding and enacting global politics. Reflecting the efforts of scholars from a variety of disciplines from political theory and Sociology to Geography and International Relations, it brings into conversation a wide spectrum of theoretical approaches including Marxism, feminism, post-structuralism and historical institutionalism. The contributors compare a range of forms of political agency; exploring their significance for the theory and practice of global politics; and reflect on the tensions and synergies generated by recent efforts to conceptualise them.Demonstrating an innovative and interdisciplinary approach Contemporary Political Agency will be of interest to students and scholars of international relations, sociology, political economy and political theory. (shrink)

Price’s :157–176, 1991; 44:187–203, 1993 ; 2007, 2017) agency theory of causation has takes itself to provide a use-theory of our causal discourse. The theory’s aim is to describe the rules implicit to our linguistic behaviour when we describe things in causal terms. According to this theory, the rules governing our use of the concept of causation are based on our perspective as agents and our associated experiences of manipulating events. I argue that the observed (...) relation between agency and our concept of causation cannot exhaustively describe the conditions under which we enter into causal discourse. In particular, I demonstrate that the agency theory faces familiar problems with accounting for causal ascriptions to token cases. (shrink)

The Assumption of Agency Theory Content Type Journal Article Category Review Pages 523-528 DOI 10.1558/jcr.v11i4.523 Authors Kathrine Elizabeth Anker, Planetary Collegium, Plymouth University, Drake Circus, Plymouth, Devon PL4 8AA, UK Journal Journal of Critical Realism Online ISSN 1572-5138 Print ISSN 1476-7430 Journal Volume Volume 11 Journal Issue Volume 11, Number 4 / 2012.

The Assumption of Agency Theory revisits the Turing Test and€examines what Turing's assessor knew. It asks important questions about how machines vis à vis humans have been characterized since Turing, and seeks to reverse the trend of looking closely at the machine by asking what humans know in interaction and how they know it.€This book€characterizes a non-human agent that shows itself in interaction but is distinct from human agency: an agent acting with us in our ongoing reproduction (...) and transformation of structure. Turing predicted that at the end of the twentieth century, w. (shrink)

IN the recent past there has been a resurgence of interest in the work of Thomas Reid; several new editions of his work have appeared as well as a series of articles concerning various aspects of his systematic philosophy. Interest has generalized to the whole Scottish tradition, including numerous figures in the history of American philosophy who were deeply influenced by Reid and Dugald Stewart. In addition, several recent and contemporary philosophers have used Reid's epistemic views as a point of (...) departure in developing their own adverbial theories of sensing and appearing. Others have used Reid's theory of agency in formulating their own views on freedom and responsibility. (shrink)

Standard accounts on the nature of the firm are highly dependent on explanations by Coase, coupled with inputs from agency theory and shareholder theory. This paper carries out their critique in light of personalist and common good postulates. It shows how personalist and common good principles create a framework that not only accommodates business ethics better but also affords a more compelling understanding of business as a whole.

As rational choice theory has moved from economics into political science and sociology, it has been dramatically transformed. The intellectual diffusion of agency theory illustrates this process. Agency theory is a general model of social relations involving the delegation of authority, and generally resulting in problems of control, which has been applied to a broad range of substantive contexts. This paper analyzes applications of agency theory to state policy implementation in economics, political science, (...) and sociology. After documenting variations in the theory across disciplinary contexts, the strengths and weaknesses of these different varieties of agency theory are assessed. Sociological versions of agency theory, incorporating both broader microfoundations and richer models of social structure, are in many respects the most promising. This type of agency theory illustrates the potential of an emerging sociological version of rational choice theory. (shrink)

Some of the most salient features of Randolph Clarke's causal agent-causal theory of free action are explicated and his theory critiqued. It is shown that invoking agent-causation is unnecessary and makes his theory cumbersome. For insofar as Clarke seeks to render the agency theory more intelligible by appealing to event-causation as contributing to the generation of basic actions, his theory gravitates closer to a causal indeterminist theory of free action.

The use of agency theory remains highly controversial among business ethicists. While some regard it as an essential tool for analyzing and understanding the recent spate of corporate ethics scandals, others argue that these scandals might not even have occurred had it not been for the widespread teaching of agency theory in business schools. This paper presents a qualified defense of agency theory against these charges, first by identifying the theoretical commitments that are essential (...) to the theory (in order to distinguish between agency theory itself and certain incorrect interpretations that have been widely promulgated), and second, by specifying more clearly the different ways that agency theory can be used to analyze relations within the firm. The recommendation that follows from this analysis is that agency theory be used as a critical-diagnostic tool, to identify the points at which both firms and markets will be vulnerable to breakdown in the absence of moral constraint. (shrink)

A shift in the cultural conception of the firm as productionsystem to that as investment-system entrenches the institutional logic of agency theory in governance reform. Reform initiatives emphasize the separation between management and the board, forensic reporting requirements, and the primacy of shareholders' entitlement to control and residual gains. Problems associated with this agency logic render reform unable to deliver a broad-based ethical operating environment. The introduction of a version of stakeholder theory, augmented by Knightian uncertainty, (...) places the development of an alternative conception of the firm into discourse. Implications for governance reform are considered. (shrink)

This paper explores the historical American political values which have shaped modern financial theory and agency theory. Financial agency theory's intellectual roots are shown to be located in the liberal tradition which espouses the instrumental nature of property and property rights. The paper also argues that financial theorists should recognize that, historically, economic efficiency was not a value or end in itself but merely a means by which more fundamental social goals might be achieved.

ABSTRACT:Some business ethicists view agency theory as a cautionary tale—a proof that it is impossible to carry out successful economic interactions in the absence of ethical behaviour. The cautionary-tale view presents a nuanced normative characterisation of agency, but itsunilateralfocus betrays a limited understanding of the structure of social interaction. This article moves beyond unilateralism by presenting a descriptive and normative argument for abilateralcautionary-tale view. Specifically, we discuss hat swaps and role dualism in asymmetric-information principal-agent relationships and argue (...) that the norm of reciprocity can function as a moral solution to agency risks in adverse-selection and moral-hazard problems. Our bilateral cautionary-tale formulation extends the normative boundaries of agency theory, while leaving the fundamental economic assumptions of agency theory intact. (shrink)

This book explains psychological, sociopolitical and organisational change in multidisciplinary settings. It shows how advanced techniques of contextual analysis can be applied to complex situations and offers a new cybernetic agency paradigm based on living systems theory. It models, diagnoses, and analyses complex, realworld situations to anticipate patterns of behaviour.

This paper studies the relationship between personal stock donation by top executives and board of directors (insiders) of publicly traded corporations and their personal tax, shareholders' returns, and social responsibility. The study finds evidence that the timing of stock donations is driven by personal tax gain. The study further shows, comparing stock gift corporations relative to their non-stock gift cohorts, that personal stock gifts are associated with lower short-term and long-term stock returns to shareholders. This implies that stock donation driven (...) by insiders' personal gain adversely affects shareholder wealth. However, the likelihood and intensity of insiders to make personal stock donation is reduced when firms have strong corporate social responsibility (CSR). Agency theory explains insiders' opportunistic behavior, stakeholder theory is also supported by evidence that stock donation is negatively related to CSR, and stewardship theory offers a different view to explain the rationale behind insiders' stock donation and shareholders' reactions to stock gifts. (shrink)

This paper studies the relationship between personal stock donation by top executives and board of directors (insiders) of publicly traded corporations and their personal tax, shareholders' returns, and social responsibility. The study finds evidence that the timing of stock donations is driven by personal tax gain. The study further shows, comparing stock gift corporations relative to their non‐stock gift cohorts, that personal stock gifts are associated with lower short‐term and long‐term stock returns to shareholders. This implies that stock donation driven (...) by insiders' personal gain adversely affects shareholder wealth. However, the likelihood and intensity of insiders to make personal stock donation is reduced when firms have strong corporate social responsibility (CSR). Agency theory explains insiders' opportunistic behavior, stakeholder theory is also supported by evidence that stock donation is negatively related to CSR, and stewardship theory offers a different view to explain the rationale behind insiders' stock donation and shareholders' reactions to stock gifts. (shrink)

Introduction -- Prelude: from gesture to virtual agency -- Foundations for a theory of agency -- Virtual environmental forces and gestural energies: actants as agential -- Virtual embodiment: from actants to virtual human agents -- Virtual identity and actorial continuity -- Interlude I: from embodiment to subjectivity -- Staging virtual subjectivity -- Virtual subjectivity and aesthetically warranted emotions -- Staging virtual narrative agency -- Performing agency -- An integrative agential interpretation of Chopin's Ballade in F (...) minor, op. 52 -- Interlude II: hearing agency: a complex cognitive task -- Other perspectives on virtual agency -- Postlude. (shrink)

This article aims to apply the model of change agent to the interpretation of Colossians. Presuming a continuity between Jesus and Paul, the article introduces the concept of ‘by faith alone’ from the Pauline letters. By this expression is meant an undivided fidelity to an inclusive approach to understanding God’s work, with concrete historical roots in Jesus’ crossing of gender, ethnic and cultural boundaries. Living in this manner requires reformation, transformation and change. The study spells out in fuller detail what (...) is understood ‘by faith alone’ by discussing the meaning of ‘faith’ within its semantic domain embedded in the codes of 1st-century Mediterranean culture. Living in faith is both a change of one’s inner convictions and about a life in faith. (shrink)

In recent years executive coaching has become an important management development practice in many organizations. Executive coaching is a partnership between a management level client and a coach hired by an organization to assist the executive in becoming a more effective and successful manager. While executive coaching has become a frequent and important practice in organizations, there has been relatively little serious consideration of the complex ethical issues that arise for persons and organizations. This study proposes that executive coaching involves (...) an agency relation with specific moral duties that go beyond the usual standards of professional ethics. Agency theory, and in particular a focused understanding of the agency relationship, can provide a needed ethical grounding and basis for moral thinking about executive coaching. (shrink)

In a previous article, I argue that on the assumption that God exercises libertarian agency, a primary causal divine miracle could, in principle, leave a scientifically detectable gap in the natural world. In a subsequent publication, Evan Fales offered a critique of my argument and this article is my rejoinder. I justify my employment of Divine libertarian agency and respond to Fales’s two, closely-related questions: How much energy could one add to a room by making a lot of (...) decisions? Would the increase in energy be measurable? (shrink)

The spectacular corporate scandals and bankruptcies of the past decade have served as a powerful reminder of the risks that are involved in the ownership of enterprise. Unlike other patrons of the firm, owners are residual claimants on its earnings.1 As a result, they have no explicit contract to protect their interests, but rely instead upon formal control of the decision-making apparatus of the firm in order to ensure that their interests are properly respected by managers. In a standard business (...) corporation, it is the shareholders who stand in this relationship to the firm. Yet as the recent wave of corporate scandals has demonstrated once again, it can be extraordinarily difficult for shareholders to exercise effective control of management, or more generally, for the firm to achieve the appropriate alignment of interests between managers and owners. After all, it is shareholders who were the ones most hurt by the scandals at Enron, Tyco, Worldcom, Parmalat, Hollinger, and elsewhere. For every employee at Enron who lost a job, shareholders lost at least US$4 million.2 Furthermore, employees escaped with their human capital largely intact. Creditors and suppliers continue to pick over the bones of the corporation.3 But as far as shareholders are concerned, their investments have simply evaporated, beyond any realistic hope of retrieval. (shrink)

The causal theory of action has been the standard view in the philosophy of action and mind. In this chapter, I will present responses to two challenges to the theory. The first says, basically, that there is no positive argument in favour of the causal theory, as the only reason that supports it consists in the apparent lack of tenable alternatives. The second challenge says that the theory fails to capture the phenomenon of agency, as (...) it reduces activity to mere happenings (events and event-causal processes). This is often referred to as the problem of "disappearing agency". My main aim is to show that there is no problem of disappearing agency, and we will see that my response to the first challenge will be conducive to this end. I will present a positive argument for the causal theory on the basis of considerations concerning the metaphysics of agency, and I will suggest that we "own" the agency that springs from our mental states and events "by default". (shrink)

Human beings act together in characteristic ways that matter to us a great deal. This book explores the conceptual, metaphysical and normative foundations of such sociality. It argues that appeal to the planning structures involved in our individual, temporally extended agency provides substantial resources for understanding these foundations of our sociality.

This innovative approach to freedom starts from an account of what we mean by describing someone, in a psychological vein, as a free subject. Pettit develops an argument as to what it is that makes someone free in that basic sense; and then goes on to derive the implications of the approach for issues of freedom in political theory. Freedom in the subject is equated with the person's being fit to be held responsible and to be authorized as a (...) partner in interaction. This book is unique among contemporary approaches - although it is true to the spirit of classical writers like Hobbes and Kant - in seeking a theory that applies to psychological issues of free agency and free will as well as to political issues in the theory of the free state and the free constitution. The driving thesis is that it is only by connecting up the different issues of freedom, psychological and political, that we can fully appreciate the nature of the questions involved, and the requirements for their resolution. The book does not not seek a comprehensive reach just for its own sake, but rather for the sake of the illumination it provides._ _ _A Theory of Freedom_ is a ground-breaking volume which will be of wide interest to scholars and students in political philosophy and political science. (shrink)

From a moral point of view we think of ourselves as capable of responsible actions. From a scientific point of view we think of ourselves as animals whose behaviour, however highly evolved, conforms to natural scientific laws. Natural Agency argues that these different perspectives can be reconciled, despite the scepticism of many philosophers who have argued that 'free will' is impossible under 'scientific determinism'. This scepticism is best overcome, according to the author, by defending a causal theory of (...) action, that is by establishing that actions are constituted by behavourial events with the appropriate kind of mental causal history. He sets out a rich and subtle argument for such a theory and defends it against its critics. Thus the book demonstrates the importance of philosophical work in action theory for the central metaphysical task of understanding our place in nature. (shrink)

Andrews Reath presents a selection of his best essays on various features of Kant's moral psychology and moral theory, with particular emphasis on his conception of rational agency and his conception of autonomy. Together the essays articulate Reath's original approach to Kant's views about human autonomy, which explains Kant's belief that objective moral requirements are based on principles we choose for ourselves. With two new papers, and revised versions of several others, the volume will be of great interest (...) to all students and scholars of Kant and of moral philosophy. (shrink)

On a version of consent theory that tempts many, predatory sexual relations involving significant power imbalances (e.g. between professors and students, adults and teenagers, or employers and employees) are wrong because they violate consent-centric norms. In particular, the wronged party is said to have been _incapable_ of consenting to the predation, and the sexual wrong is located in the encounter’s nonconsensuality. Although we agree that these are sexual wrongs, we resist the idea that they are always nonconsensual. We argue (...) instead that it is possible for students, teenagers, employees, etc. to fully consent to sexually predatory encounters; denying as much renders survivors of predation vulnerable to compounding harms. Survivors face a dilemma: give up either their understanding of their experience as wrong, or their self-conception as an agent capable of consenting. We call the latter phenomenon _agential demotion_. (shrink)

We explore the idea that a group or ‘team’ of individuals can be an agent in its own right and that, when this is the case, individual team members use team reasoning, a distinctive mode of reasoning from that of standard decision theory. Our approach is to represent team reasoning explicitly, by means of schemata of practical reasoning in which conclusions about what actions should be taken are inferred from premises about the decision environment and about what agents are (...) seeking to achieve. We use this theoretical framework to compare team reasoning with the individual reasoning of standard decision theory, and to compare various theories of team agency and collective intentionality. (shrink)

Two theories dominate the current debate on group agency: functionalism, as endorsed by Bryce Huebner and Brian Epstein, and interpretivism, as defended by Deborah Tollefsen, and Christian List and Philip Pettit. In this paper, I will give a new argument to favour functionalism over interpretivism. I discuss a class of cases which the former, but not the latter, can accommodate. Two features characterise this class: First, distinct groups coincide, that is numerically distinct groups share all their members at all (...) time. Second, we have access to the inner mechanisms of the groups agents, because members know what they have decided on. I construct a counterexample with these features allowing me to reject interpretivism about group agency in favour of functionalism. (shrink)

Experience of agency in patients with schizophrenia involves an interesting dissociation; these patients demonstrate that one can have a thought or perform an action consciously without being conscious of thinking or acting as the motivated agent, author of that thought or of that action. This chapter examines several interesting accounts of this dissociation, and aims at showing how they can be generalized to thought insertion phenomena. It is argued that control theory allows such a generalization; three different comparators (...) need to be distinguished: the sense of subjectivity relies on a comparator in which motivation and emotion play a structuring role. The sense of agency emerges in a system that delivers a rough categorization of self-generated – versus other- generated – actions and mental activities. A third system specializes in the social evaluation of the effects of an action, intention or other thought process, given certain goals in self or in others. (shrink)

Gavin Rae shows that the problematic status of agency caused by the poststructuralist decentring of the subject is a central concern for poststructuralist thinkers. He shows how this plays out in the thinking of Deleuze, Derrida and Foucault, and find the best explanation of agency for the founded subject in the work of Castoriadis.

The ultimate goal of research into computational intelligence is the construction of a fully embodied and fully autonomous artificial agent. This ultimate artificial agent must not only be able to act, but it must be able to act morally. In order to realize this goal, a number of challenges must be met, and a number of questions must be answered, the upshot being that, in doing so, the form of agency to which we must aim in developing artificial agents (...) comes into focus. This chapter explores these issues, and from its results details a novel approach to meeting the given conditions in a simple architecture of information processing. (shrink)