In this topical book, Boudewijn de Bruin examines the ethical 'blind spots' that lay at the heart of the global financial crisis. He argues that the most important moral problem in finance is not the 'greed is good' culture, but rather the epistemic shortcomings of bankers, clients, rating agencies and regulators. Drawing on insights from economics, psychology and philosophy, de Bruin develops a novel theory of epistemic virtue and applies it to racist and sexist lending practices, (...) subprime mortgages, CEO hubris, the Madoff scandal, professionalism in accountancy and regulatory outsourcing of epistemic responsibility. With its multidisciplinary reach, Ethics and the Global Financial Crisis will appeal to scholars working in philosophy, business ethics, economics, psychology and the sociology of finance. The many concrete examples and case studies mean that this book will also prove useful to policy-makers and regulators. (shrink)

The global financial crisis that began in 2007 concentrated attention on the morality of banking and financial activities. Just as mainstream businesses became increasingly defined by their financial performance, banks, it seemed, got themselves - and everyone else - into trouble through an over-emphasis on themselves as commercial enterprises that need pay little attention to traditional banking virtues or ethics. While the GFC had many causes, criticism was legitimately levelled at banks over the ethics of mortgage (...) creation, excessive securitisation, executive remuneration, and high-pressure customer sales tactics, amongst other things. These criticisms mirror those that have been levelled at the business more generally, particular in the last decade, although the backdrop provided by the GFC is more dramatic, and the outcomes of supposed wrongdoing more severe. This book focuses on business ethics after the GFC; not on the crisis itself, but how we should respond to it. The GFC has focused minds on the proper role of ethics in the understanding and conduct of business activity, but it is essential to look beyond the crisis to address the deeper challenges that it highlights. The aim of this volume is to present examples of the latest philosophically-informed thinking across a range of ethical issues that relate to business activity, using the banks and the GFC - the consequences of which continue to reverberate - as a point of departure. The book will be of great value to researchers, academics, practitioners, and students interested in business, ethics in general, and business ethics in particular. (shrink)

This book traces the collapse of integrity, the abandonment of responsibility, and the failures of moral courage that underlie the financial numbers - and identifies the changes in thinking needed to bring us back into balance.

The Global Financial Crisis is acknowledged to be the most severe economic downturn since the 1930s, and one that is unique in its underlying causes, its scope, and its wider social, political and economic implications. This volume explores some of the ethical issues that it has raised.

"Originally published in the U.K. in 2014 by Myriad Editions under the title Supercrash: how to hijack the global economy"--Title page verso.

Resisting Corporate Corruption teaches business ethics in a manner very different from the philosophical and legal frameworks that dominate graduate schools. The book offers twenty-eight case studies and nine essays that cover a full range of business practice, controls and ethics issues. The essays discuss the nature of sound financial controls, root causes of the Financial Crisis, and the evolving nature of whistleblower protections. The cases are framed to instruct students in early identification of ethics problems and how (...) to work such issues within corporate organizations. They also provide would-be whistleblowers with instruction on the challenges they’d face, plus information on the legal protections, and outside supports available should they embark on that course. Some of the cases illustrate how ‘The Young are the Most Vulnerable,’ i.e. short service employees are most at risk of being sacrificed by an unethical firm. Other cases show the ethical dilemmas facing well-known CEOs and the alternatives they can employ to better combine ethical conduct and sound business strategy. Through these case studies, students should emerge with a practical toolkit that better enables them to follow their moral compass. Finally, the cases provide an in depth look at how a corporation becomes progressively corrupted (Enron), how the Financial Crisis was rooted in ethical decay at institutions as diverse as Countrywide, Goldman Sacks, Citigroup, Fannie Mae and Moody’s, and at the ethical challenges that persist in the post-Crisis, post-Dodd-Frank environment. (shrink)

In discussing the $1 trillion bailout of the U.S. Financial Institutions, virtually every Member of Congress and almost every government official—including Fed Chairman Ben Bernanke and President Obama—has blamed the crisis on the “greed and irresponsibility of Wall Street”. Almost all of the financial executives involved in the crisis, from CEOs to middle managers, are products of our business schools. Additionally, there is a high correlation between the recentunethical behavior of a number of multinational corporations and the number (...) of MBA holders in their top ranks. As a consequence, many critics are convinced that there is something wrong with our business schools. This paper presents the causes and consequences of what ails business school students and graduates today: the toxic teaching of bad management theories. These theories—grounded in the assumptions of economics—include determinism and materialism, the cult of profit maximization and a pessimistic view of human nature as totally self-interested. By teaching these theories, business schools are inculcating values of materialism and greed that create a life-long pursuit of money and status. This makes it all too easy for business managers to choose expediency and short-term profits over ethical behavior. Further, these materialistic values create higher levels of depression, anxiety and psychological disorders as well as make our students less cooperative and more anti-social as individuals long after they leave academia. (shrink)

The 2008 global financial crisis raises ethical as much as financial questions. Moral outrage centered on the imbalance between banks profiting from excessive risk-taking in good times and taxpayers suffering the costs in bad times. The paper analyzes this imbalance in terms of ethical theory. It first develops a rights-based framework to answer questions about the moral obligations of states and banks towards each other. It then criticizes standard economic thinking, which de-moralizes (...) the phenomenon of moral hazard. Moral hazard between states and banks arises in a context that cannot be interpreted as normal economic contracting, but should rather be characterized as governed by an implicit social contract giving rise to moral obligations. (shrink)

In discussing the $1 trillion bailout of the U.S. Financial Institutions, virtually every Member of Congress and almost every government official—including Fed Chairman Ben Bernanke and President Obama—has blamed the crisis on the “greed and irresponsibility of Wall Street”. Almost all of the financial executives involved in the crisis, from CEOs to middle managers, are products of our business schools. Additionally, there is a high correlation between the recentunethical behavior of a number of multinational corporations and the number (...) of MBA holders in their top ranks. As a consequence, many critics are convinced that there is something wrong with our business schools. This paper presents the causes and consequences of what ails business school students and graduates today: the toxic teaching of bad management theories. These theories—grounded in the assumptions of economics—include determinism and materialism, the cult of profit maximization and a pessimistic view of human nature as totally self-interested. By teaching these theories, business schools are inculcating values of materialism and greed that create a life-long pursuit of money and status. This makes it all too easy for business managers to choose expediency and short-term profits over ethical behavior. Further, these materialistic values create higher levels of depression, anxiety and psychological disorders as well as make our students less cooperative and more anti-social as individuals long after they leave academia. (shrink)

During the current financial crisis, the need for an alternative to a laissez-faire ethics of capitalism (the Milton Friedman view) becomes clear. I argue that we need an order ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. -/- I will point to some aspects of order ethics which highlight the importance of rules, e.g. global rules for the financial markets. In this regard, order ethics (“Ordnungsethik”) is (...) the complement of the German conception of “Ordnungspolitik” which also stresses the importance of a regulatory framework. This framework is needed not to tame the market, but to make it more profitable in the long run. -/- The conception of order ethics relies heavily on contractarianism, especially on James Buchanan’s work. Unlike many other conceptions of ethics, it does not start with an aim to achieve, but rather with an account of what the social world – in which ethical norms have to be implemented – is like. Our social world is different from the pre-modern one. Pre-modern societies played zero-sum games in which people could only gain significantly at the expense of others. And the types of ethics that we are still used to today have been developed within these pre-modern societies. -/- Modern societies, by contrast, can be characterised – by economists and other social theorists alike – as societies with continuous growth. This growth has only been made possible by the modern competitive market economy which enables everyone to pursue his own interests within a carefully devised institutional system. In this system, positive sum games are played, which makes it in principle possible to improve the position of every individual at the same time. Most kinds of ethics, however, resulting from the conditions of pre-modern societies, ignore the possibility of win-win-situations and instead require us to be moderate, to share, to sacrifice, as this would have been functional in zero-sum games. These conceptions distinguish – in more or less strict ways – between self-interest and altruistic motivation. Self-interest, more often than not, is ultimately seen as something evil. -/- Such an ethics cannot be functional in modern societies. Ethical concepts lag behind. Within zero-sum games, it was necessary to call for temperance, for moderate profits, or for a condemnation of lending money at interest. Within positive-sum games, however, the morally desired result of a social process cannot be brought about by changes in motivation, by switching from ‘egoistic’ to ‘altruistic’ motivation. The second theoretical element introduced by order ethics is the distinction between actions and rules, which was already mentioned. Traditional ethics concerns actions: It calls directly for changes in behaviour. This is a consequence of pre-modern conditions as reconstructed before: People in the pre-modern world were only able to control their actions, not so much however the conditions of their actions. In particular, rules like laws, constitutions, social structures, the market order, and also ethical norms have remained stable for centuries. In modern societies, this situation has changed entirely. The rules governing our actions have increasingly come under our control. -/- In this situation, ethics has to focus on rules. Morality must be incorporated in incentive-compatible rules. Direct calls for changes in behaviour without changes in the rules lead only to an erosion of compliance with moral norms. Individuals that continue to behave ‘morally’ will be singled out, because the incentives have not been changed. Moral norms which are to be justified cannot require people to abstain from pursuing their own advantage. People abstain from taking ‘immoral’ advantages only if adherence to ethical norms yields greater benefits over the planned sequence of actions than defection in the single case. Thus ‘abstaining’ is not abstaining in the long run, it is rather an investment in expectations of long-term benefits. By adhering to ethical norms, I become a reliable partner for interactions. The norms do indeed constrain my actions, but they simultaneously expand my options in interactions. And people consent to rules only if these rules hold greater advantages for them, at least in the long run. -/- In general, ethics cannot require people to abandon their individual calculation of advantages. However, it may suggest improving one’s calculation, by calculating in the long run rather than in the short run, and by taking into account the interests of our fellows, as we depend on their acceptance for reaching an optimal level of well-being, especially in a globalized world full of interdependence. -/- The problem of implementation can now be placed at the beginning of a conception of order ethics, justified with reference to the conditions of modern societies I have sketched. Under the conditions of pre-modern societies, an ethics of temperance had evolved that posed simultaneously the problems of implementation and justification. The implementation of well-justified norms or standards could then be regarded as unproblematic, because the social structures allowed for a direct face-to-face enforcement of norms. Pre-modern societies not only favored an ethics of temperance, they also had the instrument of face-to-face-sanctions within their smaller and non-anonymous communities. This instrument is no longer functional in modern anonymous societies, and so we have to face up to the problem of implementation right at the start of our ethical conception. Simultaneously, an order ethics relies on the implementation of sanctions for enforcing incentive-compatible rules. In modern societies, rules and institutions, to a large extent, must fulfil the tasks that were, in pre-modern times, fulfilled by moral norms, which in turn were sanctioned by face-to-face sanctions. Norm implementation in modern societies thus works by setting adequate incentives in order to prevent the erosion of moral norms, which would happen if ‘moral’ actors were systematically threatened with exploitation by other, less ‘moral’ actors. -/- This conception of order ethics is then elaborated further in the area of business ethics. -/- . (shrink)

This article deals with the concept of greed as pertaining to Business Ethics in today’s world, considered part of the system of the study Ethics as such, in the backdrop of the recent happenings in the financial world in the USA, whose repercussions have been felt all over. The analysis draws inspiration from the words in the Mahabharata, both with a view to improving the existing theories in place in the West today, as well as having a handle on (...) greed management so needed to set liberalism on the right footing. The article brings into focus the secular spirituality imbedded in the epic relating to the concept harmony, without recourse to God parlance, a virtue around which the ethical considerations move, bringing a needed improvement on the Virtue Ethics of today, and harmonizing the three conflicting ethical theories of the day. Greed management is effective only when we look beyond science to the area of values putting the right emphasis on Virtue Ethics. (shrink)

The Global Financial Crisis is acknowledged to be the most severe economic downturn since the 1930s, and one that is unique in its underlying causes, its scope, and its wider social, political and economic implications. This volume explores some of the ethical issues that it has raised.

In the aftermath of the financial crisis, and regular corporate scandals, there has been a growing concern with the moral and ethical foundations of business. Often these concerns are limited to narrow accounts of governance codes, regulatory procedures or behaviour incentives, which are often characterized by neo-liberal bias underpinned by western masculine logics. This book challenges these limited accounts of ethics and responsibility. It looks at the writing of Gayatri C. Spivak who takes globally networked markets, people, (...) and ideas and provides tools to rethink subjectivity, ethics, and corporate governance. Eschewing strict hierarchical notions of authority and identity, Spivak's work invites us to consider who speaks for whom and for what in organizational contexts. Relationality is also to be found in the radical politics and feminist ethics of Judith Butler who continues to draw on and develop her account of performativity to interpret contemporary organizations, management and work. While popular accounts of corporate ethics often concern themselves with the aims and actions of those at the top of organisations, Lauren Berlant focuses on the struggles of those at the bottom of the new social structures created by contemporary forms of capital. Finally, the book also considers ecological challenges through the work of Val Plumwood, who spent a lifetime considering the threats and responsibilities we face in environmental terms, and developed a feminist ecological philosophy for understanding social and species differences. This book will be relevant to students and researchers across business and management, organizational studies, critical management studies, gender studies and sociology. (shrink)

When we start with the wrong question, no matter how good an answer we get, it won’t give us the results we want. Rather than joining the throngs who are asking, When will this economic crisis be over? Jim Wallis says the right question to ask is How will this crisis change us? The worst thing we can do now, Wallis tells us, is to go back to normal. Normal is what got us into this situation. We need a new (...) normal, and this economic crisis is an invitation to discover what that means. Some of the principles Wallis unpacks for our new normal are . . . • Spending money we don’t have for things we don’t need is a bad foundation for an economy or a family. • It’s time to stop keeping up with the Joneses and start making sure the Joneses are okay. • The values of commercials and billboards are not the things we want to teach our children. • Care for the poor is not just a moral duty but is critical for the common good. • A healthy society is a balanced society in which markets, the government, and our communities all play a role. • The operating principle of God’s economy says that there is enough if we share it. • And much, much more . . . In the pages of this book, Wallis provides us with a moral compass for this new economy—one that will guide us on Wall Street, Main Street, and Your Street. Embracing a New Economy Getting back to "the way things were" is not an option. It is time we take our economic uncertainty and use it to find some moral clarity. Too often we have been ruled by the maxims that greed is good, it’s all about me, and I want it now. Those can be challenged only with some of our oldest and best values—enough is enough, we are in it together, and thinking not just for tomorrow but for future generations. Jim Wallis shows that the solution to our problems will be found only as individuals, families, friends, churches, mosques, synagogues, and entire communities wrestle with the question of values together. (shrink)

The idea that the ethical values of professionals in finance have played a role in the global financial crisis is widespread. The crisis-of-ethics debate is important, concerning one of the main policy challenges of our times, but is based on popular lore and anecdotes rather than systematic evidence. We analyze the self-enhancement and self-transcendence values of PIFs vis-à-vis the general population and test for patterns of variation that are consistent with the idea of a crisis of values, (...) meaning patterns of variation that would implicate PIFs’ values in the GFC. Employing pre-crisis data allows for an unbiased assessment. Results reveal only minor differences in values between PIFs and the general population, too small to support the idea of a crisis of ethical values by objective standards. Extensive robustness checks confirm these findings, sometimes actually revealing values differences counter to the crisis of ethical values idea. We conclude that the financial system would not have fared better had we had a different breed of PIFs. Rather, situational forces can induce severe disregard for the welfare of others, also in people with ordinary, decent values. Hence, if anything, the GFC shows that the financial services industry has been providing an environment highly conducive to unethical behavior. The practical implication is that fixes to the financial system can only come from improved regulatory design. (shrink)

The increased scrutiny of investors regarding the non-financial aspects of corporate performance has placed portfolio managers in the position of having to weigh the benefits of ' holding the market' against the cost of having positions in companies that are subsequently found to have questionable business practices. The availability of stock indexes based on sustainability screening makes increasingly viable for institutional investors the transition to a portfolio based on a Socially Responsible Investment (SRI) benchmark at relatively low cost. The (...) increasing share of socially responsible investments may play a role in providing incentives towards a continuous upgrading of sustainability standards to the extent that their performance is not systematically inferior to that of the other funds. This article examines whether these incentives have been so far detectable with particular reference to the Dow Jones Sustainability Stoxx Index (DJSSI) that focuses on the European corporations with the highest CSR scores among those included in the Dow Jones Stoxx 600 Index. The aim of the article is twofold. First, we analyse the performance of the DJSSI over the period 2001-2006 compared to that of the Surrogate Complementary Index (SCI), a new benchmark that includes only the components of the DJ Stoxx 600 that do not belong to the ethical index to evaluate more correctly the size of possible divergent performances. Second, we perform an event study on the same data set to analyse whether the stock market evaluation reacts to the inclusion (deletion) in the DJSSI. In both cases, the results suggest that the evaluation of the CSR performance of a firm is a significant criterion for asset allocation activities. (shrink)

The recent global financial crisis and economic recession has generated renewed inquiry into and debate over optimal regulation of financial sectors. One such topic of interest concerns how to define, monitor, and regulate the responsibilities of private equity investors. Waves of private equity acquisitions have occurred since the 1980s. The more negative aspects of private equity investment are now under renewed scrutiny. The topic has wide scope, including the recent GM and Chrysler situations. A recent lawsuit by (...) Mervyn’s LLC, a retail department chain operating mostly in California, filed against its private equity owners highlights some of the complex issues in this topic area. The paper examines the Mervyn’s situation based on public information; and places the lawsuit in the broader scope of the topic area. The paper examines the Chrysler situation based on public information; and reports the changes in Chrysler ownership. (shrink)

Global Ethics, along with its companion volume Global Justice, will aid in the study of global justice and global ethical issues with significant global dimensions. Some of those issues directly concern what individuals, countries, and other associations ought to do in response to various global problems, such as poverty, population growth, and climate change. Others concern the concepts that are commonly used to discuss such issues, such as "development" and "human rights." And still (...) others concern the legitimacy of various phenomena that structure the global scene, such as national borders, the institutions of national sovereignty and self-determination, and attitudes such as nationalism and patriotism. In recent decades, literature on such issues has started to build up in the Western philosophical tradition. Until now, though, no up-to-date sample of this literature has been available to students and other interested parties. These two books, companion volumes sold separately, fill this gap by providing a sample of the best recent work on these themes. (shrink)

This paper assesses the current world economic crisis in terms of crucial transformations in global capitalism throughout the neoliberal period. It argues that intense social and spatial restructuring after the crises of 1973–82 produced a new wave of capitalist expansion that began to exhaust itself in the late-1990s. Since that time, new problems of overaccumulation and declining profitability have plagued global capitalism. Interconnected with these problems are contradictions related to a mutation in the form of world-money, as a (...) result of its complete de-linking from gold after 1971, which stimulated a fantastic growth in financial instruments and transactions, and generated a proliferation of esoteric 'fictitious capitals' whose collapse is wreaking havoc across world financial markets. The intersection between general conditions of overaccumulation and a crisis in financial structures specific to neoliberalism has now produced a deep world-slump. Inherent in this crisis is a breakdown in forms of value-measurement that is throwing up intense struggles between the capitalist value-form and popular life-values, the latter of which comprise the grounds for any real renewal of the socialist Left. (shrink)

The author identifies the major micro-, meso-, and macro-level financial risk shifting factors that contributed to the Great Global Recession and how the absence of a compelling moral vision of responsible financial risk management perpetuated the economic crisis and undermined the recovery by blind reliance upon insufficiently accountable bailouts. The author offers a new theoretical model of Sustainable Stakeholder Capitalism by exercising moral imagination which inclusively and moderately balances four multi-level factors: types of capitalism, (...) class='Hi'>moral theories, human nature drives, and credit risk profiles. Finally, the author recommends micro-, meso-, and macro-level practical reforms to prevent a recurrence of the current economic freefall, to re-create systemic global financial institution integrity, and to promote responsible risk management for sustainable global prosperity for current and future generations. (shrink)

This study explores the downsizing propensity of family and non-family firms by considering their territorial embeddedness during both periods of economic stability and financial crisis. By drawing on a panel dataset of Spanish manufacturing firms for the period 2002–2015, we show that, all things being equal, family firms have a lower propensity to downsizing than non-family firms. When considering the effect of territorial embeddedness, we found that territorially embedded family firms have an even lower propensity to downsizing than their (...) non-family counterparts. Furthermore, the concern of territorially embedded family firms for their employees’ welfare was particularly pronounced during the years of the global financial crisis. This result is explained by the existence of socially proximate relationships with the firms’ immediate surroundings, based on similarity and a sense of belonging, which push deeply rooted family firms to treat their employees as salient stakeholders during hard times. Overall, our study stresses the importance of local roots in moderating the relationship between family firms and downsizing. (shrink)

This volume explores the construction of an ethics for news media that is global in reach and impact.

The current global economic crisis is historically unprecedented in that it began when poor groups in the United States defaulted on their mortgage-payments and spread fear of 'toxic debt' through an internationalised financial system, bringing the banking system close to collapse and highlighting the very individualised nature of contemporary financial relations. The symposium explores contemporary finance and banking practices in the context of Marxist political economy seeking to develop the notion of financialisation and arguing that banks' increasing (...) reliance on individual households as a source of profits amounts to a form of financial expropriation or additional profit generated in the sphere of circulation. (shrink)

This short theoretical paper elucidates a plausible theory about the Global Financial Crisis and the role of senior financial corporate directors in that crisis. The paper presents a theory of the Global Financial Crisis which argues that psychopaths working in corporations and in financial corporations, in particular, have had a major part in causing the crisis. This paper is thus a very short theoretical paper but is one that may be very important to the (...) future of capitalism because it discusses significant ways in which Corporate Psychopaths may have acted recently, to the detriment of many. Further research into this theory is called for. (shrink)

ABSTRACT Economists not only failed to anticipate the financial crisis; they may have contributed to it—with risk and derivatives models that, through spurious precision and untested theoretical assumptions, encouraged policy makers and market participants to see more stability and risk sharing than was actually present. Moreover, once the crisis occurred, it was met with incomprehension by most economists because of models that, on the one hand, downplay the possibility that economic actors may exhibit highly interactive behavior; and, on the (...) other, assume that any homogeneity will involve economic actors sharing the economist’s own putatively correct model of the economy, so that error can stem only from an exogenous shock. The financial crisis presents both an ethical and an intellectual challenge to economics, and an opportunity to reform its study by grounding it more solidly in reality. (shrink)

Machine generated contents note: Preface; Introduction; Part I. Global Health, Definitions and Descriptions: 1. What is global health? Solly Benatar and Ross Upshur; 2. The state of global health in a radically unequal world: patterns and prospects Ron Labonte and Ted Schrecker; 3. Addressing the societal determinants of health: the key global health ethics imperative of our times Anne-Emmanuelle Birn; 4. Gender and global health: inequality and differences Lesley Doyal and Sarah Payne; 5. Heath systems (...) and health Martin McKee; Part II. Global Health Ethics, Responsibilities and Justice: Some Central Issues: 6. Is there a need for global health ethics? For and against David Hunter and Angus Dawson; 7. Justice, infectious disease and globalisation Michael Selgelid; 8. International health inequalities and global justice: toward a middle ground Norman Daniels; 9. The human right to health Jonathan Wolff; 10. Responsibility for global health? Allen Buchanan and Matt DeCamp; 11. Global health ethics: the rationale for mutual caring Solly Benatar, Abdallah Daar and Peter Singer; Part III. Analyzing Some Reasons for Poor Health: 12. Trade and health: the ethics of global rights, regulation and redistribution Meri Koivusalo; 13. Debt, structural adjustment and health Jeff Rudin and David Sanders; 14. The international arms trade and global health Salahaddin Mahmudi-Azer; 15. Allocating resources in humanitarian medicine Samia Hurst, Nathalie Mezger and Alex Mauron; 16. International aid and global health Anthony Zwi; 17. Climate change and health: risks and inequities Sharon Friel, Colin Butler and Anthony McMichael; 18. Animals, the environment and global health David Benatar; 19. The global crisis and global health Stephen Gill and Isabella Bakker; Part IV. Shaping the Future: 20. Health impact fund: how to make new medicines accessible to all Thomas Pogge; 21. Biotechnology and global health Hassan Masun, Justin Chakma and Abdallah Daar; 22. Food security and global health Lynn McIntyre and Krista Rondeau; 23. International taxation Gillian Brock; 24. Global health research: changing the agenda Tikki Pang; 25. Justice and research in developing countries Alex John London; 26. Values in global health governance Kearsley Stewart, Gerald T. Keusch and Arthur Kleinman; 27. Poverty, distance and two dimensions of ethics Jonathan Glover; 28. Teaching global health ethics James Dwyer; 29. Towards a new common sense: the need for new paradigms of global health Isabella Bakker and Stephen Gill; Index. (shrink)

Economists not only failed to anticipate the financial crisis; they may have contributed to it—with risk and derivatives models that, through spurious precision and untested theoretical assumptions, encouraged policy makers and market participants to see more stability and risk sharing than was actually present. Moreover, once the crisis occurred, it was met with incomprehension by most economists because of models that, on the one hand, downplay the possibility that economic actors may exhibit highly interactive behavior; and, on the other, (...) assume that any homogeneity will involve economic actors sharing the economist’s own putatively correct model of the economy, so that error can stem only from an exogenous shock. The financial crisis presents both an ethical and an intellectual challenge to economics, and an opportunity to reform its study by grounding it more solidly in reality. (shrink)

Die globale Finanz- und Wirtschaftskrise wirft noch immer eine Reihe von grundlegenden Fragen auf. Dies beginnt schon bei der Analyse der Ursachen. Die Probleme des Krisenmanagements sind offensichtlich - allen voran die langfristigen Folgen ausufernder Staatsverschuldung. Aus Sicht der Entwicklungslander bleibt die Sorge, dass dies zu Lasten wichtiger Investitionen in Armutsbekampfung, Klimaschutz und andere zentrale Aufgaben nachhaltiger globaler Politik gehe. Der politische Wille, in globaler Abstimmung eine strukturelle Neuordnung der Finanzmarkte einzuleiten, ist inzwischen erlahmt, die Finanzinstitute sind uberwiegend zum "Business (...) as usual" zuruckgekehrt. Vor diesem Hintergrund werden Handlungsoptionen fur eine stabile wie entwicklungsvertragliche und damit ethisch vertretbare globale Finanzordnung erortert. (shrink)

A global survey of Business Ethics as a field of teaching and research was launched in the second half of 2008. The launch of this survey coincided with the global financial meltdown that was triggered by the subprime crisis in the USA. As part of the global survey of Business Ethics, respondents from nine world regions were requested to provide information on the current focus of research in the field of Business Ethics in their respective (...) countries. They were also asked about the new challenges that they foresee arising over the next 5 years. The timing of the survey makes it possible to determine what the focus of research in the field of Business Ethics was before the start of the global economic crisis, whilst the responses that were given to the survey in response to the question about new challenges in the field of Business Ethics over the next 5 years give an indication of what the new focus areas in Business Ethics research might be after the onset of the global economic crisis. By critically comparing the focus areas of research in Business Ethics prior to the economic crisis to the new areas of research that are foreseen after the onset of the global economic crisis, some insights might be gained on how the global economic crisis is likely to affect the study of capitalism, finance and corporate responsibility in the field of Business Ethics. (shrink)

This extended editorial takes stock of the first volume of the journal Ethics and Social Welfare, offering an overview of the types of contributions in the first four issues and suggesting future themes. A critical summary is given of the contributions so far, which have included: moral philosophical theorizing; analysis of key ethical concepts; exploration of contested areas of policy and practice; empirical studies of living conditions, perceptions, attitudes and professional interventions; accounts of ethical issues in practice; (...) ethical issues in research; and models of professional ethical decision making. Themes identified for future consideration include: service user perspectives on aspects of social welfare practice; development of practice-based ethical theories for the social welfare professions; ideas about teaching professional and practical ethics; ethical issues in managing and distributing resources; critical analysis of the ethical implications of public policies; further contributions offering moral, political and social philosophical perspectives on issues of social justice, cultural diversity, global and local policies for tackling environmental and humanitarian crises. (shrink)

This paper examines voluntary corporate social responsibility (CSR) reporting as a form of moral discourse. It explores how alternative stakeholder perspectives lead to differing perceptions of the process and content of responsible reporting. We contrast traditional stakeholder theory, which views stakeholders as external parties having a social contract with corporations, with an emerging perspective, which views interaction among corporations and constituents as relational in nature. This moves the stakeholder from an external entity to one that is integral to corporate (...) activity. We explore how these alternative stakeholder perspectives give rise to different normative demands for stakeholder engagement, managerial processes, and communication. We discuss models of CSR reporting and accountability: EMAS, the ISO 14000 series, SA8000, AA1000, the Global Reporting Initiative, and the Copenhagen Charter. We explore how these models relate to the stakeholder philosophies and find that they are largely consistent with the traditional atomistic view but fall far short of the demands for moral engagement prescribed by a relational stakeholder perspective. Adopting a relational view requires stakeholder engagement not only in prescribing reporting requirements, but also in discourse relating to core aspects of the corporation such as mission, values, and management systems. Habermas’ theory of communicative action provides guidelines for engaging stakeholders in this moral discourse. (shrink)

The current financial crisis is one rooted not in recent deregulation but in the breaking of ancient (religious) laws, and this crisis is one of many ethical problems today that have religious roots. The tone of this essay is informed by a document from the World Council of Churches, which affirms "greed as violence" and that Christians do not have all the answers to the problem of greed; therefore, Christians need to seek solutions with other religious communities. Furthermore, (...) religious leaders, theologians, and ethicists, by their very station in life, are not able to effectively listen to the voices of the poor and marginalized people of the world. Self-critically examining the mainstream traditions within Christianity for its allegiance to empires, the article calls for engaging the alternative, rather than the mainstream traditions within religions whose interpretations of Scripture have provided insights that are at variance with the mainstream. It calls those who engage in this work to be double-headed: to examine others' beliefs from the perspective of the other—while continuing to be rooted in one's own center—and to recognize that the voices of those in poor or marginalized communities are inaccessible, unless those who are poor themselves become the mediators of dialogue. (shrink)

Interest in Aristotelianism and in virtue ethics has been growing for half a century but as yet the strengths of the study of Aristotelian ethics in politics have not been matched in economics. This ground-breaking text fills that gap. Challenging the premises of neoclassical economic theory, the contributors take issue with neoclassicism’s foundational separation of values from facts, with its treatment of preferences as given, and with its consequent refusal to reason about final ends. Contributions critically engage with aspects of (...) corporate capitalism, managerial power and neoliberal economic policy, and reflect on the recent financial crisis from the point of view of Aristotelian virtue ethics. Containing a new chapter by Alasdair MacIntyre, and deploying his arguments and conceptual scheme throughout, the book critically analyses the theoretical presuppositions and institutional reality of modern capitalism. (shrink)

As the issue of food safety became one of the important public agenda, consumer concern for food safety became the general public concern. The Korea U.S. Free Trade Agreement (KORUS FTA) completion allowing import of U.S. beef to Korea has turned into a massive public uproar and a series of demonstrations, revealing widespread concerns on the part of Korean producers and consumers about government food safety regulations and mishandling of the beef trade requirement. The mishandling of public concerns for BSE (...) on U.S. beef import by the administrators led to a breakdown of the relationship between the public and the government and a loss of consumer confidence in Korea’s food safety system. The KORUS FTA beef crisis raised the issues of government accountability and the importance of understanding moral and ethical aspects of food safety management that pose perceived risk for BSE by the Korean citizen. The aim of this paper is to address the importance of understanding consumer concerns, food ethics and of appropriate risk communication in dealing with politically and publically sensitive food safety issues. This is achieved by assessing the factors that contributed to the conflict between the Korean government and the Korean public over the KORUS FTA beef agreement. (shrink)

The global financial crisis has shattered the illusion that all was well with capitalism and forced us to confront the great challenges we face today with a new sense of urgency. Few are better placed to do this than Zygmunt Bauman, a social thinker whose writings on liquid modernity have pioneered a new way of seeing the world in which we live at the dawn of the 21st Century. Our liquid modern world is characterized by the transition from (...) a society of producers to a society of consumers, the natural extension of which is the society of perpetual debtors. The ruling idea of the society of consumers is to prevent needs from being satisfied and to create demand; its natural extension is to enable consumers to consume more by borrowing. Debt was transformed into a crucial profit-earning asset of capitalism in liquid modern times. The present-day 'credit crunch' is not the outcome of the banks' failure but rather the fruit of their success in transforming the majority of men and women, young and old, into a race of debtors. They got what they were looking for: a society of debtors whose condition of being in debt was made self-perpetuating, with more debts being offered, and more undertaken, as the only way of escaping from the debts already incurred. Starting from this reflection on the current global financial crisis and prompted by the probing questions of his interlocutor, Citlali Rovirosa-Madrazo, Bauman examines in an historical perspective some of the most pressing moral and political issues of our time, from international terrorism and the rise of religious and secular fundamentalism to the decline of the nation-state and the threats posed by global warming, issues whose seriousness and urgency attest to the fact that we are living today not only on borrowed money but also on borrowed time. (shrink)

To commemorate 40 years since the founding of the Journal of Business Ethics, the editors in chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialogue around the theme Ethics at the centre of global and local challenges. For much of the history of the Journal of Business Ethics, ethics was seen within the academy as a peripheral aspect of business. However, (...) in recent years, the stakes have risen dramatically, with global and local worlds destabilized by financial crisis, climate change, internet technologies and artificial intelligence, and global health crises. The authors of these commentaries address these grand challenges by placing business ethics at their centre. What if all grand challenges were framed as grand ethical challenges? Tanusree Jain, Arno Kourula and Suhaib Riaz posit that an ethical lens allows for a humble response, in which those with greater capacity take greater responsibility but remain inclusive and cognizant of different voices and experiences. Focussing on business ethics in connection to the grand challenge of environmental emergencies, Steffen Böhm introduces the deceptively simple yet radical position that business is nature, and nature is business. His quick but profound side-step from arguments against human–nature dualism to an ontological undoing of the business–nature dichotomy should have all business ethics scholars rethinking their “business and society” assumptions. Also, singularly concerned with the climate emergency, Boudewijn de Bruin posits a scenario where, 40 years from now, our field will be evaluated by its ability to have helped humanity emerge from this emergency. He contends that Milieudefensie v. Royal Dutch Shell illustrates how human rights take centre stage in climate change litigation, and how business ethics enters the courtroom. From a consumer ethics perspective, Deirdre Shaw, Michal Carrington and Louise Hassan argue that ecologically sustainable and socially just marketplace systems demand cultural change, a reconsideration of future interpretations of “consumer society”, a challenge to the dominant “growth logic” and stimulation of alternative ways to address our consumption needs. Still concerned with global issues, but turning attention to social inequalities, Nelarine Cornelius links the capability approach to global and corporate governance, arguing that CA will continue to lie at the foundation of human development policy, and, increasingly, CSR and corporate governance. Continuing debate on the grand challenges associated with justice and equality, Laurence Romani identifies a significant shift in the centrality of business ethics in debates on managing differences, positing that dialogue between diversity management and international management can ground future debate in business ethics. Finally, the essay concludes with a commentary by Charlotte Karam and Michelle Greenwood on the possibilities of feminist-inspired theories, methods, and positionality for many spheres of business ethics, not least stakeholder theory, to broaden and deepen its capacity for nuance, responsiveness, and transformation. In the words of our commentators, grand challenges must be addressed urgently, and the Journal of Business Ethics should be at the forefront of tackling them. (shrink)

The Other's War is an intervention into a set of contemporary moral, political and legal debates over the legitimacy of war and terrorism within the context of the so-called global War on Terror. Tarik Kochi considers how, despite the variety of its approaches âe" just war theory, classical realist, post-Kantian, poststructuralist âe" contemporary ethical, political and legal philosophy still struggles to produce a convincing account of war. Focusing on the philosophical problem of the rightness of war, The (...) Other's War responds to this lack. Through a discussion of a number of key Western intellectual traditions, Kochi demonstrates how often conflicting and contradictory conceptions of warâe(tm)s rightness have developed in modernity. He shows how a process of ordering violence around different notions of right has constantly redrawn the boundaries of what constitutes âe~legitimateâe(tm) violence. Such a process has consequences for anyone who claims to be fighting a âe~just warâe(tm). Building upon this account and drawing upon the philosophical heritage of G.W.F. Hegel and Ernst Bloch, The Otherâe(tm)s War proposes a new understanding of war, not just as a social condition characterised by violent conflict and struggles for power, but as the attempt of individuals and groups to realise their normative claims through violence. Kochi argues that both of these aspects of war are an expression of the metaphysics of human subjectivity. War begins with, and is the radical exaggeration of, a fundamental activity of human subjectivity, in which the subject constitutes its normative and material identity; realising and positing itself through acts that involve negation and violence. By drawing consideration of the problem of war back to the level of a philosophical examination of the metaphysics of human subjectivity, The Other's War develops a novel theory of war that helps us to better understand the nature of contemporary conflict as a process of recognition. From this perspective, judgment, it is concluded, needs to be constantly guided by the effort to recognise the ethics of the other's war. (shrink)

Mankind is faced with a number of serious problems that demand an effective solution. The prevalence of injustice and the frequency of financial crises are two of the most serious of these problems. Consisting of an in-depth introduction along with a selection of eight of Muhammad Umer Chapra's essays--four on Islamic economics and four on Islamic finance--this timely book raises the question of what can be done to not only minimize the frequency and severity of the financial crises, (...) but also make the financial system more equitable. The author considers the origins of Islamic economics and outlines its development and underlying principles. He compares the approach taken to ethics and economics in Islam with that taken in the West, considering whether lessons can be applied to the global financial architecture in order to mitigate against financial crises. The book also examines the case against interest and looks at both innovation in Islamic finance, as well as challenges facing the industry. Written by a leading authority in the field, this book will be a stimulating resource for students and researchers in Islamic economics and finance, as well as providing valuable insight to all of those with an interest in financial systems and their interaction with society. (shrink)

The global financial crisis has shattered the illusion that all was well with capitalism and forced us to confront the great challenges we face today with a new sense of urgency. Few are better placed to do this than Zygmunt Bauman, a social thinker whose writings on liquid modernity have pioneered a new way of seeing the world in which we live at the dawn of the 21st Century. Our liquid modern world is characterized by the transition from (...) a society of producers to a society of consumers, the natural extension of which is the society of perpetual debtors. The ruling idea of the society of consumers is to prevent needs from being satisfied and to create demand; its natural extension is to enable consumers to consume more by borrowing. Debt was transformed into a crucial profit-earning asset of capitalism in liquid modern times. The present-day ‘credit crunch' is not the outcome of the banks' failure but rather the fruit of their success in transforming the majority of men and women, young and old, into a race of debtors. They got what they were looking for: a society of debtors whose condition of being in debt was made self-perpetuating, with more debts being offered, and more undertaken, as the only way of escaping from the debts already incurred. Starting from this reflection on the current global financial crisis and prompted by the probing questions of his interlocutor, Citlali Rovirosa-Madrazo, Bauman examines in an historical perspective some of the most pressing moral and political issues of our time, from international terrorism and the rise of religious and secular fundamentalism to the decline of the nation-state and the threats posed by global warming, issues whose seriousness and urgency attest to the fact that we are living today not only on borrowed money but also on borrowed time. (shrink)

Global Bioethics gathers some of the world's leading bioethicists to explore many of the new questions raised by the globalization of medical care and ...

The ethics of medical care and biomedical research are rapidly becoming global. This volume gathers some of the world's leading bioethicists to explore many of the new questions raised by the internationalization of medical care and biomedical research. Among the topics covered are the impact of globalization on the norms of medical ethics, the conduct of international research, the ethics of international collaborations, challenges to medical professionalism in the international setting, and the relation of religion to global bioethics.

This book advances a novel theory of international justice that combines the orthodox liberal notion that the lives of individuals are what ultimately matter morally with the putatively antiliberal idea of an irreducibly collective right of self-governance. The individual and her rights are placed at center stage insofar as political states are judged legitimate if they adequately protect the human rights of their constituents and respect the rights of all others. Yet, the book argues that legitimate states have a (...) class='Hi'>moral right to self-determination and that this right is inherently collective, irreducible to the individual rights of the persons who constitute them. Exploring the implications of these ideas, the book addresses issues pertaining to democracy, secession, international criminal law, armed intervention, political assassination, global distributive justice, and immigration. A number of the positions taken in the book run against the grain of current academic opinion: there is no human right to democracy; separatist groups can be morally entitled to secede from legitimate states; the fact that it is a matter of brute luck whether one is born in a wealthy state or a poorer one does not mean that economic inequalities across states must be minimized or even kept within certain limits; most existing states have no right against armed intervention; and it is morally permissible for a legitimate state to exclude all would-be immigrants. (shrink)

The author posits that greed and insensitivity to the needs of others are corrosive values that have engendered the global economic crisis. Examples are cited to support the thesis that it is primarily an ethics crisis that has resulted in the distortion of the US economy, such that the middle class is sliding into poverty while the wealthiest 1 per cent is ever more powerful and wealthy. The irony of the predatory capitalism being practised is that it is ultimately (...) self-destructive to the practitioners. The unsustainability of the present system is discussed along with solutions, including stakeholder management, corporate and personal altruism and spiritual awakening. (shrink)