In four new and nine previously published essays, Joseph Heath provides a compelling new framework for thinking about the moral obligations of economic actors. The "market failures" approach to business ethics that he develops provides the basis for a unified theory of business ethics, corporate law, economic regulation, and the welfare state.

Until Joseph Heath came along, philosophical business ethics was in a bad way. To the extent it’s still in a bad way, perhaps it’s because Heath has had insufficient influence. Before Heath, much of the debate in the field was between two major theories—stockholder and stakeholder theory. Both of these theories are either false, or vacuous and empty, depending on the interpretation. Heath has to some degree rescued the field by providing what is perhaps the only good general theory of (...) business ethics, which Heath calls the Market Failures Approach. (To be clear, there is some good casuistical work in business ethics, but the Market Failures Approach is perhaps the only good general theory of.. (shrink)

: This paper argues that three salient corrupt practices that mark contemporary Chinese health care, namely the over-prescription of indicated drugs, the prescription of more expensive forms of medication and more expensive diagnostic work-ups than needed, and illegal cash payments to physicians—i.e., red packages—result not from the introduction of the market to China, but from two clusters of circumstances. First, there has been a loss of the Confucian appreciation of the proper role of financial reward for good health care. Second, (...) misguided governmental policies have distorted the behavior of physicians and hospitals. The distorting policies include (1) setting very low salaries for physicians, (2) providing bonuses to physicians and profits to hospitals from the excessive prescription of drugs and the use of more expensive drugs and unnecessary expensive diagnostic procedures, and (3) prohibiting payments by patients to physicians for higher quality care. The latter problem is complicated by policies that do not allow the use of governmental insurance and funds from medical savings accounts in private hospitals as well as other policies that fail to create a level playing field for both private and government hospitals. The corrupt practices currently characterizing Chinese health care will require not only abolishing the distorting governmental policies but also drawing on Confucian moral resources to establish a rightly directed appreciation of the proper place of financial reward in the practice of medicine. (shrink)

Joseph Heath defends competitive markets and conceptualizes business ethics with reference to Pareto efficiency, which he takes to be the “implicit morality of the market.” His justification for markets is that they generate Pareto efficient outcomes, meaning that markets optimally satisfy consumer preferences. And, for Heath, business ethics is the set of normative constraints—regulation and beyond-compliance norms—needed to preserve that outcome. The present paper accepts Heath’s claim that the economic justification for markets is ethical, in that (...) satisfying consumer preferences is a good. But, contra Heath, the ethical consideration at work is a consequentialist one; and acknowledging this consequentialism exposes limitations of Heath’s “market failures” approach to business ethics. We suggest two limitations, and we expect many will accept our argument that Heath’s conception of business ethics is too narrow. The present paper outlines two broader implications. First, acknowledging that the justification for markets is ethical eliminates the apparent—and false—conflict between purportedly amoral economic activity on one hand and ethical considerations on the other; instead, business ethics is a matter of weighing the consequentialist ethical benefit of economic activity and markets against other moral arguments/other ethical considerations. Second, Heath restricts business ethics to the constraints needed to protect the market’s ability to efficiently satisfy consumer preferences, constraints he calls “efficiency imperatives”; this restriction supports the widespread tendency to think that all social problems are economic; and, a business ethics so-conceived diminishes the perceived importance of noneconomic values—this attitude is dangerous. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and (...) institutional, libertarian thought, on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

In this chapter, we discuss a selection of current views of the neural correlates of consciousness (NCC). We focus on the different predictions they make, in particular with respect to the role of prefrontal cortex (PFC) during visual experiences, which is an area of critical interest and some source of contention. Our discussion of these views focuses on the level of functional anatomy, rather than at the neuronal circuitry level. We take this approach because we currently understand more about (...) experimental evidence at this coarse level and because these results are appropriate for arbitrating between current theoretical frameworks. We discuss the Two-Visual-Systems Hypothesis (Milner & Goodale 1995; 2006), Local Recurrency (Lamme 2010; Lamme 2006), Higher Order (Lau 2008; Lau & Rosenthal 2011) and Global Workspace theories (Baars 1997; Baars 2005; Dehaene & Naccache 2001; Dehaene 2014). Despite the apparent stark differences between conscious and unconscious perceptual processing, available evidence suggests that their neural substrates must be largely shared. This indicates that the difference in neural activity between conscious and unconscious perceptual processing is likely to be subtle and highly specialized. We argue that current experimental evidence about the involvement of specific activity in prefrontal cortex supports the higher order neural theory of consciousness. In consequence, imaging techniques that focus only on marked differences between conscious and unconscious level of activity are likely to be insensitive to the relevant neural activity patterns that underlie conscious experiences. Finally, it follows from the evidence we discuss that the functional advantages of conscious over unconscious perceptual processing may be more limited than commonly thought. (shrink)

When Istvan Hont died in 2013, the world lost a giant of intellectual history. A leader of the Cambridge School of Political Thought, Hont argued passionately for a global-historical approach to political ideas. To better understand the development of liberalism, he looked not only to the works of great thinkers but also to their reception and use amid revolution and interstate competition. His innovative program of study culminated in the landmark 2005 book Jealousy of Trade, which explores the birth (...) of economic nationalism and other social effects of expanding eighteenth-century markets. Markets, Morals, and Politics brings together a celebrated cast of Hont's contemporaries to assess his influence, ideas and methods. Richard Tuck, John Pocock, John Dunn, Raymond Geuss, Gareth Stedman Jones, Michael Sonenscher, John Robertson, Keith Tribe, Pasquale Pasquino, and Peter N. Miller contribute original essays on themes Hont treated with penetrating insight. (shrink)

Upon what kind of moral order does capitalism rest? Conversely, does the market give rise to a distinctive set of beliefs, habits, and social bonds? These questions are certainly as old as social science itself. In this review, we evaluate how today's scholarship approaches the relationship between markets and the moral order. We begin with Hirschman's characterization of the three rival views of the market as civilizing, destructive, or feeble in its effects on society. We review recent (...) work at the intersection of sociology, economics, and political economy and show that these views persist both as theories of market society and moral arguments about it. We then argue that a fourth view, which we call moralized markets, has become increasingly prominent in economic sociology. This line of research sees markets as cultural phenomena and moral projects in their own right, and seeks to study the mechanisms and techniques by which such projects are realized in practice. (shrink)

This paper argues that Rawls’ principles of justice provide a normative foundation for stakeholder theory. The principles articulate (at an abstract level) citizens’ rights; these rights create interests across all aspects of society, including in the space of economic activity; and therefore, stakeholders – as citizens – have legitimate interests in the space of economic activity. This approach to stakeholder theory suggests a political interpretation of Boatright’s Moral Market approach, one that emphasizes the rights/place of citizens. And (...) this approach to stakeholder theory – in terms of citizens – raises a further question, what rights and obligations do economic agents have, beyond those attached to their roles as citizens? Rawls would reject additional rights and obligations of this sort for two reasons, one tied to freedom and one tied to pluralism. Rawls’ work therefore presses us to re-conceptualize the place of ethical claims in the economic context. (shrink)

As research on ethical consumers and consumption practices has continued to grow, a complimentary body of work concerned less with ethical consumption but more with ethics in consumption has emerged. Problematizing the divide between ethical and non-ethical consumption, this stream of research focuses on the domain of everyday and explores the moral struggles individuals face while engaging in ordinary consumption practices. However, the attention on the ordinary runs the risk of obscuring the contribution of the ‘extraordinary’ or the transcendental (...) to the ethical concerns embedded in the mundane flow of the everyday. This study addresses this blind spot and explores the ways in which religion is implicated in everyday consumption ethics. In doing so, I go beyond a view of religion as an individual trait and emphasize its role as a major institutional structure of the contemporary political economy. The empirical context of the study is the controversy over the so-called halal nail polish. The debate over the products’ appropriateness for Muslim women provides a fertile setting to explore how an ordinary object becomes an ethical problem amid changing relations between religion and market. In order to trace and analyse the linkages between daily practices and institutional dynamics I draw from the moral economy framework and discuss the multiple and conflicting moral repertoires that shape the ethical evaluations of the object. The study offers several contributions to the existing theorizations of everyday consumption ethics and moral economies of consumption. It also highlights the potential of interdisciplinary approaches in providing a holistic understanding of the ethical and moral dimensions of consumption. (shrink)

The market failures approach is amongst the most influential theories of business ethics. Its interest within the field is, in large part, a result of its rejection of moralism and any sort of applied ethics approach, favouring, in contrast, a focus on the institutionally embodied goal of economic activity, which it takes to be that of Pareto efficiency. From this articulation of the goal, or purpose, of markets, a set of efficiency imperatives are derived that are taken (...) to comprise the implicit morality of the market. However, the market failures approach has not adequately explained the basis of market actors’ moral motivation, that is, the reasons individuals have to self-consciously adhere to moral norms governing market transactions. This failure, I argue, stems from its misspecification of the purpose of the market. After explaining this failure to address the problem of moral motivation, I argue that a distinctive mode of freedom understood as a form of self-authorship is better seen as the purpose of the market, a goal that actually animates individual market participants. I then argue that this notion of freedom is intrinsically linked to a conception of responsibility and that this notion of responsibility can be more adequately conceptualized as involving a set of market virtues focused on promoting mutually beneficial transactions. Thus, the link between freedom and responsibility, stemming from an individual’s need to legitimize their freedom in a market context, provides the basis for a self-conscious sense of moral motivation. As such, this approach better captures the implicit morality of the market while also addressing the problem of moral motivation. (shrink)

Linguistic justice is about institutions distributing material and symbolic resources fairly when they are faced with linguistic diversity. However, no theory of linguistic justice has developed a systematic and comprehensive account of the moral dilemmas that take place in interpersonal linguistic relationships, in particular the power dynamics leading to (linguistic) domination. The aim of this article is to start building a general theory of linguistic domination, one that offers new conceptual tools for both empirical and normative analyses of linguistically (...) diverse societies. Using the republican tradition of thought, I argue that there is linguistic domination whenever someone is subject to the uncontrolled capacity for interference over their linguistic uses, ideology and acquisition by another agent. This article tests under what conditions this phenomenon takes place and the parties involved in it (both in terms of individuals and political institutions). (shrink)

When a circular coin is rotated in depth, is there any sense in which it comes to resemble an ellipse? While this question is at the center of a rich and divided philosophical tradition (with some scholars answering affirmatively and some negatively), Morales et al. (2020, 2021) took an empirical approach, reporting 10 experiments whose results favor such perspectival similarity. Recently, Burge and Burge (2022) offered a vigorous critique of this work, objecting to its approach and conclusions on (...) both philosophical and empirical grounds. Here, we answer these objections on both fronts. We show that Burge and Burge’s critique rests on misunderstandings of Morales et al.’s claims; of the relation between the data and conclusions; and of the philosophical context in which the work appears. Specifically, Burge and Burge attribute to us a much stronger (and stranger) view than we hold, involving the introduction of “a new entity” located “in some intermediate position(s) between the distal shape and the retinal image.” We do not hold this view. Indeed, once properly understood, most of Burge and Burge’s objections favor Morales et al.’s claims rather than oppose them. Finally, we discuss several questions that remain unanswered, and reflect on a productive path forward on these issues of foundational scientific and philosophical interest. (shrink)

ABSTRACT The late Richard Titmuss made a persuasive case against allowing the sale of human blood in his book, The Gift Relationship. His arguments have been developed further by Peter Singer in recent articles. While the issues of quantity and quality of blood under market and non‐market systems have received much attention, the moral and political aspects of the Titmuss‐Singer case have gone relatively unexamined. First, I question their claim that a donation‐only system promotes greater freedom, which rests on (...) a confusion of liberty and opportunity. Next, I consider reasons for doubting their view that altruism is fostered significantly more under the non‐market approach. Finally, I survey recent developments in the quantity‐quality debate and possible implications of the blood controversy for national health care. (shrink)

We are moving towards a future where Artificial Intelligence (AI) based agents make many decisions on behalf of humans. From healthcare decision-making to social media censoring, these agents face problems, and make decisions with ethical and societal implications. Ethical behaviour is a critical characteristic that we would like in a human-centric AI. A common observation in human-centric industries, like the service industry and healthcare, is that their professionals tend to break rules, if necessary, for pro-social reasons. This behaviour among humans (...) is defined as pro-social rule breaking. To make AI agents more human-centric, we argue that there is a need for a mechanism that helps AI agents identify when to break rules set by their designers. To understand when AI agents need to break rules, we examine the conditions under which humans break rules for pro-social reasons. In this paper, we present a study that introduces a ‘vaccination strategy dilemma’ to human participants and analyzes their response. In this dilemma, one needs to decide whether they would distribute COVID-19 vaccines only to members of a high-risk group (follow the enforced rule) or, in selected cases, administer the vaccine to a few social influencers (break the rule), which might yield an overall greater benefit to society. The results of the empirical study suggest a relationship between stakeholder utilities and pro-social rule breaking (PSRB), which neither deontological nor utilitarian ethics completely explain. Finally, the paper discusses the design characteristics of an ethical agent capable of PSRB and the future research directions on PSRB in the AI realm. We hope that this will inform the design of future AI agents, and their decision-making behaviour. (shrink)

Marketing ethics is normally marketed as a sub-specialization of business ethics. In this paper, marketing ethics serves as an umbrella term for advertising, PR and sales ethics and as an example of professional ethics. To structure the paper, four approaches are distinguished, with a focus on typical professional conflicts, codes, roles or climates respectively. Since the moral climate approachis more inclusive than the other approaches, the last part of the paper deals mainly with moral climates, within the above-mentioned (...) marketing sub-professions. (shrink)

Entrepreneurs of contested commodities often face stakeholders engaged in market excluding boundary work driven by ethical considerations. For example, the conversion of academic scientific knowledge into technologies that can be owned and sold is a growing global trend and key stakeholders have different ethical responses to this contested commodity. Commercialization of science can be viewed as a good thing because people believe it bolsters economic growth and broadly benefits society. Others view it as bad because they believe it discourages basic (...) research that ought to be freely shared without concern for profit. Taking a descriptive sociological approach, we posit that the stance of a religious tradition toward capitalism will help shape individual scientists’ views on science commercialization and test whether the religious tradition of scientists correlates with their attitude toward the commercialization of science. To maximize variance on the religious tradition dimension, we analyze pooled data from a cross-national survey of university biologists and physicists encompassing France, Hong Kong, India, Italy, Taiwan, Turkey, UK and the USA. We indeed find religious tradition differences. Hindus and scientists with no religious tradition are more likely to agree that commercialization of science “harms a university’s commitment to knowledge production” than Protestants. We end with a discussion on business ethics and the moral limits of the market as well as implications for entrepreneurs of contested commodities. (shrink)

This paper is a report of an empirical psychological study of the relationship between the ethical and financial beliefs and desires of ethical investors. Semi-structured interviews of 20 ethical investors have been carried out by the project 10 of which have been analysed using qualitative data analysis software. All of our participants faced the problem that, while they had ethical concerns, they were not prepared to sacrifice their essential financial requirements to address them. We found four common ways of dealing (...) with this problem: they divided up their money into core and surplus accounts; they decided that it was enough to only be a partial ethical investor; they avoided detailed consideration of the costs of ethical investment; and they avoided rigorous ethical thinking. One equilibrium position arising from these responses is a portfolio approach to ethics, which allows people to assuage their consciences by investing only a small proportion of their investments ethically, while leaving the rest in non-ethical investment vehicles. (shrink)

One of the most vexing problems in contemporary liberal democratic theory and practice is the relation between ethics and economics. This article presents a way of bringing this relation into focus in the terms offered by two incredibly influential but too-often neglected twentieth-century political philosophers: John Dewey and Friedrich Hayek. I describe important points of contact between Dewey and Hayek that enable us to begin the project of reframing contemporary debates between ethical egalitarians and economic libertarians. Cautiously recognizing these commonalities (...) whilst remaining attentive to persisting differences enables us to better approach the difficult relations between morals and markets. Specifically, I argue for a Deweyan combination of fair trade and free trade motivated by taking seriously a Hayekian caution about states. The result is a democratic theory that importantly refuses to attribute too much political efficacy to the quintessential liberal distinction between public and private. (shrink)

This paper is a report of an empirical psychological study of the relationship between the ethical and financial beliefs and desires of ethical investors. Semi-structured interviews of 20 ethical investors have been carried out by the project 10 of which have been analysed using qualitative data analysis software. All of our participants faced the problem that, while they had ethical concerns, they were not prepared to sacrifice their essential financial requirements to address them. We found four common ways of dealing (...) with this problem: they divided up their money into core and surplus accounts; they decided that it was enough to only be a partial ethical investor; they avoided detailed consideration of the costs of ethical investment; and they avoided rigorous ethical thinking. One equilibrium position arising from these responses is a portfolio approach to ethics, which allows people to assuage their consciences by investing only a small proportion of their investments ethically, while leaving the rest in non-ethical investment vehicles. (shrink)

In this paper we address the problem of short-term electric energy prediction using a time series forecasting approach applied to data generated by a Paraguayan electricity distribution provider. The dataset used in this work contains data collected over a three-year period. This is the first time that these data have been used; therefore, a preprocessing phase of the data was also performed. In particular, we propose a comparative study of various machine learning and statistical strategies with the objective of (...) predicting the electric energy consumption for a given prediction horizon, in our case seven days, using historical data. In this paper we have tested the effectiveness of the techniques with different historical window sizes. Specifically, we considered two ensemble strategies, a neural network, a deep learning technique and linear regression. Moreover, in this study, we tested whether the inclusion of meteorological data can help achieve better predictions. In particular, we considered data regarding temperature, humidity, wind speed and atmospheric pressure registered during the three-year period of data collection. The results show that, in general, the deep learning approach obtains the best results and that such results are obtained when meteorological data are also considered. Moreover, when meteorological data is used, a smaller historical window size is required to obtain precise predictions. (shrink)

A popular form of cause marketing (CM) that has recently emerged is one requiring the consumer to perform a prescribed behavior—such as providing a product review or uploading a picture on social media alongside a hashtag—to trigger a donation from the firm to the charitable cause. While this approach may be engaging, its effectiveness in eliciting positive consumer responses toward the brand remains uncertain when compared to conventional forms of CM. The current research uses a moral self-signaling framework (...) to examine the role of effort in CM on consumer attitudes toward the brand, consumer choice, and purchase and participation intentions. Five studies reveal that consumers who are concerned about their moral self-image prefer effort-based CM over no-effort CM. This effect emerges because consumers anticipate greater moral self-signaling utility from effort-based CM than from no-effort CM. However, this effect only occurs for CM campaigns where the consumer’s effort is private. Despite the prevalence of CM campaigns requiring public performance of effort (e.g., selfie campaigns), consumers seeking to reinforce their moral self-image view such campaigns unfavorably. Important implications of effort-based CM for firms, non-profits, and consumers are discussed. (shrink)

El gran edificio de la moral kantiana, construido sobre una sólida concepción de la naturaleza de lo ético, deja con todo un margen a la perplejidad: no acaba de convencer. Estudiadas las líneas maestras de su arquitectónica, la investigación que busca hallar la raíz de esta insatisfacción, termina por centrarse en el concepto kantiano de "razón práctica". En él se descubre el uso del modelo jurídico, que tiene como consecuencia una concepción de la ley moral que encaja más (...) en el orden del derecho que en el ético. (shrink)

Despite sharing Catholic Social Teaching as their system of morals and both being confronted with marketisation pressures, working conditions at German and Belgian Catholic social service providers of elderly care differ. We argue that an interdisciplinary approach is needed to understand such differences, as interpretation of CST is mediated by local contexts. Working conditions result from interactions shaped by each country’s respective religious, legal and socio-economic contexts, providing players with different levels of discretion and power resources. In Belgium, working (...) conditions at Catholic elderly care providers tend to be better due to a strong Catholic trade union, encompassing labour market regulation and a universal legal system applying to all care providers. Moreover, there is strong interaction between these Catholic care providers and other Catholic institutions. By contrast, German CSSPs, operating as faith-based organisations with their own legal framework in a relatively liberalised and decentralised labour market, are able to use various flexibility practices which put pressure on working conditions. Using such practices is partially justified by the Catholic discourse on charity and altruism, stressing the particular nature of work in the Catholic care sector. Overall, the article demonstrates differences in the local application of CST. It also shows how transnational differences in working conditions at Catholic social service providers are the product of more than just local differences in the interpretation and application of CST principles, being shaped by interactions between a country’s specific religious, legal and socio-economic contexts. (shrink)

For most of human history, economic systems were personal in nature--people normally interacted with people they knew personally and knew well. Today's modern market economies are impersonal--people normally interact with people they do not know personally. The historical movement from personal to impersonal systems was necessary for societies to develop the specialization of labor needed for modern production technologies. That is, the high standards of living in the developed world are due to these impersonal systems. However, the ethical systems theologians (...) apply to modern market systems were developed for personal societies and are often inappropriate for impersonal societies. In this article, we develop the differences between personal and impersonal systems, examine the writings of a number of theologians who are very critical of market economies, and attempt to show how a different ethical approach is needed. (shrink)

Pharmaceutical industry marketers are confronted with specific ethical issues linked to the tension between the economic interest being pursued and the health mission of this sector. Indeed this dual mission could be problematic for them when the two objectives contradict each other. We use the concept of moral dissonance to examine how marketers in the pharmaceutical industry perceive the profit/health tension inherent in their sector and how they deal with it. Based on narratives of 18 marketers working in the (...) pharmaceutical sector, our qualitative study identifies ethical conflicts of varying intensity that generate differing degrees of moral dissonance among marketers. To cope with this moral dissonance, they use the following strategies: (1) minimize the sensitivity of their activity; (2) invoke the benefits to patients; and (3) avoid behaviors that conflict with their values. (shrink)

This collection of essays by one of America's leading legal theorists is unique in its scope: It shows how traditional problems of philosophy can be understood more clearly when considered in terms of law, economics and political science. There are four sections in the book. The first offers a new version of legal positivism and an original theory of legal rights. The second section critically evaluates the economic approach to law, and the third considers the relationship of justice to (...) liability for unintentional harms and to the practice of settling disputes rather than fully litigating them. Finally, Coleman explores formal social choice in democratic theory, the relationship between market behaviour and voting, and the view that morality itself, like law, is a solution of the problem of market failure. This book will be of cardinal importance to philosophers of law, legal theorists, political scientists and economists. (shrink)

Philosophy and psychoanalytical psychology converge in this examination of some of the central themes in this work on María Zambrano, such as exile, mercy, and the development of the individual. With a special focus on the psychology of the unconscious and the universe of symbolism, the book also provides thought-provoking interpretations of two emblematic tragic figures, those of Oedipus and Antigone, and an interesting approach to the figure of Cervantes' Dulcinea.

This paper questions the dominance of market-based mechanisms (MBMs) as the primary means of climate change mitigation. It argues that, not only they are unsuccessful on their own terms, but also they actually make the task more difficult by the unintended consequence of normalising the act of polluting and crowding out alternatives. The theoretical contribution of the paper is to draw a link between two bodies of literature. The first is the business ethics literature on the dominance of market-based rather (...) than direct regulation, and the second is the literature on market ethics, particularly the work of Michael Sandel on how MBMs crowd out non-market norms. The empirical contribution is to use the international maritime transport sector to illustrate the way market-based regulation renders alternatives such as direct regulation and supply-side approaches invisible. (shrink)

The market failures approach to business ethics has recently garnered substantial critical attention (see, e.g., Cohen and Peterson 2019; Moriarty 2020; Steinberg 2017; Hsieh 2017; von Kriegstein 2016; Smith 2018; Endorfer and Larue 2022; Singer 2018). Though precursors of this view can be found in the literature (e.g., McMahon 1981; Friedman 1970), it was Joseph Heath (2004, 2006, 2014, 2023) who developed the approach and gave it its name. The market failures approach (henceforth: MFA) is concerned with (...) the ethical obligations of managers of firms (Heath 2014, 69). Roughly, it holds that managers ought not to conduct their businesses in a way that exploits market failures. “Market failure” is a technical term, meaning any failure of the conditions of the first fundamental welfare theorem, sometimes called the “Pareto conditions” (see Arrow 1951). The theorem states that if the Pareto conditions hold, then the market equilibrium will use society’s scarce resources efficiently, meaning that no one could be made better-off without making anyone else worse off. Efficiency, according to Heath (2014, chapter 7), is the implicit morality of the market. We coordinate much of our shared activity using markets, Heath claims, because of their ability to produce efficient results. Markets are good forms of social organization, according to Heath, because they are the best way to promote our values given empirical facts about the frailties of human psychology and the informational constraints that we face. As such, managers ought not compromise the very conditions that justify a market economy by profiting from breakdowns in the market’s efficiency. Managers are permitted to maximize profits, so long as they do not violate the market’s norm of efficiency in so doing. This is because the fundamental justification for the profit motive is that it is necessary for the operation of the price system which is essential to the efficiency properties of markets. In this paper, I will argue that the MFA is more general than even Heath himself claims. The MFA describes the professional obligations of managers, but the view I develop, the generalized market failures approach, describes the obligations of all market participants. Since efficiency is the implicit morality of the market, it binds not just managers, but all market participants, including consumers, investors and workers. Market participants are permitted to maximize the benefit they gain from market interactions, as long as they do so in a way that does not take advantage of any market failures. Generalizing the MFA in this way has three benefits: first, we gain a unified understanding of the ethics of non-managerial market roles; second, we will develop an even better understanding of the duties of managers; finally, it gives us the resources to respond to some familiar objections to the MFA found in the literature. In the next section, I will further motivate the MFA and explain how this motivation can be easily generalized to other market roles. Importantly, one can avoid benefiting from a market failure in two distinct ways: by avoiding transactions that exploit market failures or by transacting in such markets and then remediating the harm done, by compensating those negatively affected by the market failure. This section concludes by discussing how the remediation duties are to be split between the transacting parties and how to identify the parties to whom compensation is owed. In section 3, I use the tools of the generalized MFA to develop a unified ethics of consumption, investment and labor, respectively. This is the basis of a grand abductive argument for the generalized MFA. The view is strongly supported by the fact that it provides attractive and unifying explanations of our obligations in domains as variegated as carbon offsetting, CEO compensation, the reparations white Americans owe to black Americans and occupational licensure. Section 4 briefly concludes. (shrink)

Joseph Heath (2014) argues that the contribution of competitive markets to Pareto-efficiency generates moral constraints that apply to business managers. Heath argues that ethical behavior on the part of management consists in avoiding profit-seeking strategies which, under conditions of perfect competition, would decrease Pareto-efficiency. I argue that because (1) such conditions do not obtain; and (2) the most efficient result – under imperfect conditions – is not achieved by satisfying the largest possible set of the remaining conditions; it (...) is (3) impossible to draw any substantive ethical guidelines from Heath’s approach. (shrink)

Few scholars have investigated the considerations of over-empowered teams from a non-consequential ethics approach. Leveraging a virtue-based ethics lens of team empowerment, we provide a framework of team ethical orientation and over-empowerment using highly influential market research teams as a basis for our analysis. The purpose of this research is to contrast how teams founded on virtue-based ethics can attenuate ethical dilemmas and negative organizational outcomes from team over-empowerment. We provide a framework of four conditions that include Sophisticated, Suppressed, (...) Contagion, and Impeded to discuss alignment between team ethical orientation and team empowerment. Through this framework, we aim to further our understanding of empowered team behavior between action that is virtuous, moral, and ethical and activity that threatens organizational values and goals. (shrink)

The ongoing bioethical debate about organ markets rests not only on theoretical premises, but also on assumptions regarding public views of and attitudes toward organ donation that need closer socioempirical examination. Summarizing results from our previous qualitative social research in this field, this paper illustrates the ethical significance of such public moralities in two respects: On one hand, it analyzes the implicit bias of the common rhetoric of “organ scarcity” which motivates much of the commercialization debate. On the other (...) hand, it explores the blind spots of the paradigm of “altruistic donation” which informs many arguments against commercialization. We conclude that the ethical discourse has to appreciate the social nature of organ donation as a reciprocal interaction between different parties with irreducibly different but equally relevant viewpoints. We criticize the neglect of such well-founded public considerations in certain philosophical-ethical approaches and stress the need for further systematic and comparative socioempirical studies about peoples’ actual perspectives in bioethics. (shrink)

Many philosophical discussions hinge on the concept of knowability. For example, there is a blooming literature on the so-called paradox of knowability. How to understand this notion, however? In this paper, we examine several approaches to the notion: the naive approach to take knowability as the possibility to know, the counterfactual approach endorsed by Edgington (1985) and Schlöder (2019) , approaches based on the notion of a capacity or ability to know (Fara 2010, Humphreys 2011), and finally, approaches (...) that make use of the resources of dynamic epistemic logic (van Benthem 2004, Holliday 2017). (shrink)

In recent years, character traits in general and virtue-related concepts in particular have been of considerable interest to philosophers, psychological researchers, and practitioners in the business ethics field. Three approaches to character traits can be used to incorporate ethics into organizations: virtues, character strengths, and competencies. The aim of this article is to clarify the concept of character traits, or virtues, and provide a unified operational version of it for incorporation into management. To this end, we first discuss the analogy (...) among virtues, character strengths, and competencies. Then, we propose a list of moral competencies that can be implemented in competency-based human resource management. (shrink)

Ethical leadership has so far mainly been featured in the organizational behavior domain and, as such, treated as an intra-organizational phenomenon. The present study seeks to highlight the relevance of ethical leadership for extra-organizational phenomena by combining the organizational behavior perspective on ethical leadership with a classical marketing approach. In particular, we demonstrate that customers may use perceived ethical leadership cues as additional reference points when forming purchasing intentions. In two experimental studies, we find that ethical leadership positively affects (...) purchasing intentions because of customers’ concerns for moral self-congruence. We show this by means of both mediation and moderation analyses. Interestingly, the effect of perceived ethical leadership on purchasing intentions holds over and above the ethical advertising claims that are commonly used in marketing. We conclude by discussing the possible ramifications of ethical leadership beyond its effects on immediate employees. (shrink)

Journalists are guided by ethical principles derived from history, philosophy, and the findings of the 1947 Commission on Freedom of the Press. Newspaper owners, however, often are motivated primarily by profits. This study uses the rubric of the Hutchins Commission to propose a new ethical approach to the trend toward monopoly buyouts in urban markets. The author asserts that the closing of one newspaper violated the spirit, if not the intent, of Hutchins as applied through a corporate ethics (...) formula, then concludes that the foundation of ethics should move from newsrooms to boardrooms. (shrink)

Corporate social responsibility has been intensively discussed in business ethics literature, whereas the social responsibility of private consumers appears to be less researched. However, there is also a growing interest from business ethicists and other scholars in the field of consumer social responsibility. Nevertheless, previous discussions of ConSR reveal the need for a viable conceptual basis for understanding the social responsibility of consumers in an increasingly globalized market economy. Moreover, evolutionary aspects of human morality seem to have been neglected despite (...) the fact that private consumers are undoubtedly human beings. In addition to that, empirical studies suggest that many consumers believe themselves to be responsible but do not act according to their alleged values or attitudes. This raises the question of what deters them from doing so. Therefore, the contribution of this conceptual paper is threefold: we conceptualize ConSR in terms of a combination of a Max Weber-inspired approach with the social connection approach to shared responsibility proposed by Iris Marion Young; shed light on the previously neglected implications of an evolutionarily induced bounded morality for ConSR, and identify potential obstacles to socially responsible consumption, particularly against the backdrop of shared social responsibility and bounded morality. In this latter respect, the paper focuses specifically on the obstacles of low moral intensity, moral stupefaction, informational complexity, and the lack of perceived consumer effectiveness. In sum, the paper advances knowledge in the field of ConSR by using a transdisciplinary, literature-based approach. (shrink)

I present here a case against the evidentialist approach that claims that in so far as our interests are epistemic what should guide our belief formation and revision is always a strict adherence to the available evidence. I go on to make the stronger claim that some beliefs based on admittedly “insufficient” evidence may exhibit epistemic virtue. I propose that we consider a form of courage to be an intellectual or epistemic virtue. It is through this notion of courage (...) that we can see a weakness in the evidentialist position. Adopting a doxastically courageous approach allows us to acknowledge the role that evidence has in epistemic justification and its connection with promoting epistemic value, but it avoids the narrowness of an evidentialist position. The epistemically courageous agent is not one who disregards the evidence entirely, but she also realizes that taking risks will not necessarily keep her from her epistemic goals. Believing something in the face of insufficient evidence is not always an epistemic vice to be avoided, and the agent that recognizes this is better off for it. (shrink)

Since some AI algorithms with high predictive power have impacted human integrity, safety has become a crucial challenge in adopting and deploying AI. Although it is impossible to prevent an algorithm from failing in complex tasks, it is crucial to ensure that it fails safely, especially if it is a critical system. Moreover, due to AI’s unbridled development, it is imperative to minimize the methodological gaps in these systems’ engineering. This paper uses the well-known Box-Jenkins method for statistical modeling as (...) a framework to identify engineering pitfalls in the adjustment and validation of AI models. Step by step, we point out state-of-the-art strategies and good practices to tackle these engineering drawbacks. In the final step, we integrate an internal and external validation scheme that might support an iterative evaluation of the normative, perceived, substantive, social, and environmental safety of all AI systems. (shrink)

The United States Environmental Protection Agency has begun to encourage innovative market-based approaches to address nonpoint source water pollution. These water quality trading programs have the potential to achieve environmental standards at a lower overall cost. Two fundamental questions must be answered before these benefits can be realized: How will trades between point and nonpoint sources be monitored and enforced? and, How will nonpoint sources be included within a trading market? ;Point-nonpoint source trading can be accommodated through either a technology-based (...) or performance-based approach. The technology-based approach accommodates trading through the use of a proxy for unobservable, individual nonpoint source emission reductions. While trading ratios can effectively deal with the uncertainty associated with using a proxy for actual abatement, they are inefficient and ineffective for dealing with problems of hidden action. The alternative use of performance-based trading approaches requires the use of team contracts that provide individual incentives linked to the performance of the entire group. Such contracts must be designed to overcome both adverse selection and moral hazard problems. Performance-based approaches promise efficiency gains in terms of reducing the problems of asymmetric information, and by introducing flexibility into the choice of nonpoint source abatement technologies and practices. ;Nonpoint sources are exempted from direct regulation under the polluter-pays-principle. As a result, their participation in trading markets is voluntary, thus preventing a baseline cap on pre-trade emissions. To determine whether this arrangement should be changed, we must ask if there something that morally prohibits the direct regulation of nonpoint sources of pollution. While a morally relevant distinction can be made between point and nonpoint sources of emission based on differences in the ability to observe individual emission levels, this relevance is limited to the case of performance-based policy instruments. The moral legitimacy of applying the polluter-pays-principle to nonpoint sources of pollution must be made on a case by case basis, as it is dependent upon existing social, economic, and other practical factors. However, it can be stated that there is no general moral barrier to prohibit the application of the polluter-pays-principle to nonpoint sources of pollution. (shrink)

virgilee's smile brightens the gloaming, some sunlight penetrates the low-lying clouds, but a persistent mist hides merchants from one another. She sweeps her arm around this eerie scene and conjures up the attraction of the Market. So many people learned about business here, their kids are now in business all over the City. You're free here; everybody is doing their own thing at their own pace. Folks working here want to be successful. At work you go by the other guys' (...) rules, you're free here for a few hours, like being out in the woods, you can come in the middle of the week and it's private here and people don't notice you, it's therapeutic like being in an oasis. You meet so many people it really is the melting... (shrink)

RESUMEN Se aborda el tema de la "racionalidad" en la versión estándar del enfoque pragmadialéctico, que pretende superar la dicotomía entre los aspectos normativo y descriptivo que existe en los estudios sobre argumentación. Se señala que la pragmadialéctica, al conceptualizar su noción de racionalidad, asume explícitamente ciertos postulados popperianos y, dado que aquella también incluye elementos de Searle y Grice, se indaga si las ideas de racionalidad de estos filósofos están presentes implícitamente en el compromiso con la racionalidad. A su (...) vez, se da cuenta de algunos nexos del pensamiento aristotélico con los planteamientos de Popper, Searle y Grice con el fin de aclarar la concepción de la racionalidad que tienen los pragmadialécticos, y de estimular un regreso enriquecedor a las fuentes de la argumentación. ABSTRACT The article addresses the issue of "rationality" in the standard version of the pragma-dialectic approach, which aims at overcoming the dichotomy between the normative and descriptive aspects that are evident in studies on argumentation. It points out that when conceptualizing its notion of rationality, pragma-dialectics explicitly assumes some of Popper's postulates. Given that said conceptualization also includes elements from Searle and Grice, the paper also inquires into whether these philosophers' ideas on rationality are implicitly present in the commitment to rationality. Likewise, it discusses some connections between Aristotelian thought and the formulations of Popper, Searle, and Grice, in order to clarify the pragma-dialectic conception of rationality and foster an enriching return to the sources of argumentation. (shrink)

One major objection to social rights is a failure of determining which precise social and economic claims should be granted rights status. The social rights debate has grappled with this ‘indeterminacy problem’ for quite some time, and a number of proposals have emerged aimed at fixing the content of these rights. In what follows I examine three distinct approaches to fleshing out the idea of a minimum threshold: social rights as the fulfilment of basic needs, social rights as the securing (...) of a minimally decent life and social rights as a requirement of citizenship. Each of these proposals progressively expands on what the minimum threshold of social rights requires and, conversely, what obligations they generate on part of the state. I will show that none of these approaches is entirely satisfactory and suggest that the social rights debate look elsewhere to determine its content. (shrink)

The view of business ethics that Christopher McMahon calls the “implicit morality of the market” and Joseph Heath calls the “market failures approach” has received a significant amount of recent attention. The idea of this view is that we can derive an ethics for market participants by thinking about the “point” of market activity, and asking what the world would have to be like for this point to be realized. While this view has been much-discussed, it is still not (...) well-understood. This paper seeks to remedy this problem. I begin by showing, against some recent commentators, that McMahon’s view and Heath’s view are fundamentally the same. Second, I clarify the sense of “efficiency” at work in the market failures approach. Finally, I argue that, in its current form, this view has little relevance to the real world of business. I conclude by sketching two ways of modifying it to fit our world. (shrink)