This book introduces the moral philosophy of Immanuel Kant—in particular, the concepts of autonomy, dignity, and character—to economic theory, explaining the importance of integrating these two streams of intellectual thought. Mainstream economics is rooted in classical utilitarianism, recommending that decision makers choose the options that are expected to generate the largest net benefits. For individuals, the standard economic model fails to incorporate the role of principles in decision-making, and also denies the possibility of true choice, which can be independent (...) of preferences and principles altogether. For policymakers, standard decision-making frameworks recommend tradeoffs that are beneficial in terms of material goods or wealth, but may be morally questionable from a more person-centered perspective. Integrating Kantian ethics affects economics in three important ways. This integration allows for a more complete understanding of human choice, incorporating not just preferences and constraints, but also principles and strength of will or character. It demonstrates the broader impact of welfare economics, which generates policies that affect not only persons' well-being, but also their dignity and autonomy. Finally, it reconciles the traditional, individualist stance in economic models of choice with the social responsibility emphasized by many systems of philosophical ethics and heterodox schools of economics. (shrink)

The longstanding interest in business ethics has been given renewed emphasis by high profile scandals in the world of business and finance. At the same time, many economists--dissatisfied with the discipline's emphasis on self-interest and individualism and by the asocial nature of much economic theory--have sought to englarge the scope of economics by looking at ethical questions. In Ethics and Economic Affairs a group of interdisciplinary scholars provide contributions on international interest in this aspect of socio-economics (...) and economic-psychology. The book is divided into four parts. The first looks at Business Ethics and Management. Part Two enlivens the debate with empirical data. The third part examines the implications for economic theory and asks if the integration of ethics in the economy is possible or if they are fundamentally different systems. Part Four introduces perspectives from other disciplines, sets economics within its wider context and looks to the future. The editors have brought together a group of contributors from nine different countries and a broad range of disciplines, including: Norman E. Bowie, Monroe Burk, Amitai Etzioni, Richard H. Guerette, Ralph E. Miner, Lynne M. Rosansky, N. Craig Smith, Roberts Stallaerts, Philip Stone and John Tomer. (shrink)

The relationship between ethics and economics in the modern age is typically viewed as external. This view is usually articulated in the notion that for economic relations to be ethical, an ethic must be imposed. Otherwise, economic relations are amoral. I try to show how the relationship is actually best explained by adopting an explanatory framework of inter-dependent arising, according to which the emergence and development of both ethical and economic relations is a matter of mutual determination. Ethical (...) values emerge in the course of developing economic relations and, in turn, direct or at least implicate economic relations. The consequences of such a view, however, are that exchange values inform moral concepts and moral concepts help frame economic ones. I offer an argument that starts with a description of an historical relationship between two disparate cultures. The interactions between these cultures were determined initially by trade and then military interests. These interests eventually underwent pressure to evolve into legal and even religiously informed arrangements that necessarily involved certain moral values. Using a presupposition analysis, I show how this evolution was no accident and did not depend on some agent imposing the moral values onto the relationship. Rather, those values arose as a matter of course. In conclusion, the paper advances the idea that, since the relationship between ethics and economics is internal, the ethics of economic relations needs to be formulated more in terms of understanding what economic relations are fundamentally designed to achieve. (shrink)

Mucopolysaccharidosis VI is an autosomal recessive lysosomal storage disorder associated with severe disability and premature death. The presence of a mucopolysaccharidosis-like disease in indigenous ethnic groups in Colombia can be inferred from archaeological findings. There are several indigenous patients with mucopolysaccharidosis VI currently receiving enzyme replacement therapy. We discuss the ethical and economic considerations, regarding both direct and indirect costs, of a high-cost orphan disease in a marginalised minority population in a developing country.

This article shows the philosophical kinship between Adam Smith and Mary Wollstonecraft on the subject of love. Though the two major 18th century thinkers are not traditionally brought into conversation with each other, Wollstonecraft and Smith share deep moral concerns about the emerging commercial society. As the new middle class continues to grow along with commerce, vanity becomes an ever more common vice among its members. But a vain person is preoccupied with appearance, status, and flattery—things that get in the (...) way of what Smith and Wollstonecraft regard as the deep human connection they variously describe as love, sympathy, and esteem. Commercial society encourages inequality, Smith argues, and Wollstonecraft points out that this inequality is particularly obvious in the relationships between men and women. Men are vain about their wealth, power and status; women about their appearance. Added to this is the fact that most middle class women are both uneducated and encouraged by the conduct literature of their day to be sentimental and irrational. The combined economic and moral considerations of Wollstonecraft and Smith show that there is very little room for love in commercial society as they conceived it. (shrink)

Providing health care in the most cost-effective way has become a priority in recent years. This book tackles the important issue of the potential conflict between economic expediency and the welfare of individual patients. Contributors examine different attitudes to this complex problem, along with a variety of legal and historical perspectives. The book addresses particular aspects of health care, such as medical expert systems, general practice, medical education, and clinical decision-making where the direct involvement of doctors in allocating scarce and (...) expensive resources is perhaps most obvious. (shrink)

This chapter contains sections titled: The application of deontological ethics to business The application of economic utilitarianism to business Problems of reconciling deontological and economic perspectives The perspectives' problems of theoretical scope and relevance Conclusion.

Despite decades of empirical happiness research, there is still little evidence for the positive effect of economic growth on life satisfaction. This poses a major challenge to welfare economic theory and to normative conceptions of socio-economic development. This book endeavours to explain these findings and to make sense of their ethical implications. While most of the existing literature on empirical happiness research is ultimately interested in understanding how to improve human lives and societal development, the ethical backdrop against which these (...) findings are evaluated is rarely made explicit. In contrast to this, Professor Hirata focuses on the role happiness should play in an ethically founded conception of good development. Taking a development ethics perspective, this book proposes a nuanced conception of happiness that includes both its affective and its normative dimensions and embeds this in a comprehensive conception of good development. The argument is that happiness should not be regarded as the only thing that determines a good life and that good development cannot sensibly be thought of as a matter of maximizing happiness. Happiness should rather be seen as an important indicator for the presence or absence of those concerns that really matter to people: the reasons that give rise to happiness. This book should be of interest to students and researchers of economics, psychology and development studies. (shrink)

The essay analyses an epochal change in the history of ethics - the rise of consequentialism as an alternative to earlier ethics focussing on virtues, due to the insight that sometimes virtuous behavior has deleterious consequences, while vicious behavior may benefit society. It shows that Machiavelli’s political, Mandeville’s economic and Malthus’s demographic claims are analogous. They presuppose the emergence of a new science of the social world, which is not reducible to intentions. The focus of the essay is (...) on the justifications of capitalism proposed in the 18 th century; it discusses which of them are still valid while trying to evaluate contemporary forms of capitalism. Their greatest danger is the spill-over of rational egoism from the sphere of economy to that of politics. (shrink)

This paper attempts to better define the areas of conflict and agreement between value ethics and the theoretical ethics of the market processes at work in the biotechnology industry. Despite the apparent lack of ethics in an oligopolistically competitive pharmaceuticals industry, the paper concludes that the current stage of development of the medical biotechnology subindustry offers unparalleled opportunities for ethical systems to influence the market-based development of biotechnology. Ethical conversations between doctors and biologists with ethicists can help (...) the market absorb more of the reflective wisdom that ethics brings when discussing such issue areas as justice, patents of the human genome, and modifications of the human genome. If conversations between ethicists and biotechnological managers and doctors are successful the metaphors of market-based financing may be refined and the knowledge base of the good increased. (shrink)

This paper develops a normative evaluation of the minimum wage in the light of recent evidence and theory about its effects. It argues that the minimum wage should be evaluated using a consequentialist criterion that gives priority to the jobs and incomes of the worst off. This criterion would be accepted by many different types of consequentialism, especially given the two major views about what the minimum wage does. One is that the minimum wage harms the jobs and incomes of (...) the worst off and the other is that it does neither much harm nor much good. The paper then argues at length that there are no important considerations besides jobs and incomes relevant to the assessment of the minimum wage. It criticizes exploitation arguments for the minimum wage. It is not clear that the minimum wage would reduce exploitation and the paper doubts that, if it did, it would do so in a morally significant way. The paper then criticizes freedom arguments against the minimum wage by rejecting appeals to self-ownership and freedom of contract and by arguing that no freedom of significance is lost by the minimum wage that is not already taken account of in the main consequentialist criterion. The conclusion is that, at worst, the minimum wage is a mistake and, at best, something to be half-hearted about. Footnotes1 My thanks to Paul Brown and Jerry Cohen for their written and verbal help, Andrew Williams for long discussions of this paper, two anonymous referees and the editors, and audiences at the Universities of Auckland, Newcastle, and Reading. (shrink)

This essay argues that medical innovation proceeds most efficiently and effectively within a free market economy. Medical innovation is an expression of the technological project: the program through which we seek to control nature, to improve the quality and quantity of life. The Technological Project proceeds most efficiently with a free market economy because such a market both promotes competition and encourages innovation. As I argue, the market is a discovery process in which alternatives are tried, tested, and selected by (...) consumer's choices. The alternatives to a free market - primarily central planning and a heavily regulated market - fail adequately to encourage medical innovation. (shrink)

This essay serves as an introduction to five papers on economic inequality in this issue of the Journal of Religious Ethics. In addition to introducing the articles individually, the essay also gives a brief overview of recent economic developments that have led religious ethicists to call attention to the issue of inequality.

Three types of objections have been raised against sweatshops. According to their critics, sweatshops are (1) exploitative, (2) coercive, and (3) harmful to workers. In “The Ethical and Economic Case Against Sweatshop Labor: A Critical Assessment,” Powell and Zwolinski critique all three objections and thereby offer what is arguably the most powerful defense of sweatshops in the philosophical literature to date. This article demonstrates that, whether or not unregulated sweatshops are exploitative or coercive, they are, pace Powell and Zwolinski, harmful (...) to workers. (shrink)

In recent years, business ethics and economic scholars have been paying greater attention to the development of commons organizing. The latter refers to the processes by which communities of people work in common in the pursuit of the common good. In turn, this promotes commons organizational designs based on collective forms of common goods production, distribution, management and ownership. In this paper, we build on two main literature streams: the ethical approach based on the theory of the common good (...) of the firm in virtue ethics and the economic approach based on the theory of institutions for collective action developed by Ostrom’s research on common-pool resources to avert the tragedy of the commons. The latter expands to include the novel concepts of new commons, “commoning” and polycentric governance. Drawing on the analysis of what is new in these forms of organizing, we propose a comprehensive model, highlighting the integration of two sets of organizing principles—common good and collective action – and five problem-solving processes to explain the main dimensions of commons organizing. We contribute to business ethics literature by exploring the convergence between the ethical and economic approaches in the development of a commons organizing view. (shrink)

Part intellectual autobiography and part exposition of complex yet contemporary economic ideas, this lively conversation with renowned scholar and public intellectual Kenneth J. Arrow focuses on economics and politics in light of history, current events, and philosophy as well. Reminding readers that economics is about redistribution and thus about how we treat each other, Arrow shows that the intersection of economics and ethics is of concern not just to economists but for the public more broadly. With (...) a foreword by Amartya Sen, this book highlights the belief that government can be a powerful force for good, and is particularly relevant in the current political climate and to the lay reader as well as the economist. (shrink)

This paper reviews an ongoing debate about moral standards for vocational education in German speaking countries. At the centre of the controversy is the question of universalistic versus domain‐specific moral orientations, namely the question of whether business people ought to develop different moral points of view in different situations (such as ‘private’ versus ‘professional’). Of pivotal importance in this context is also a prominent ethical approach (by Karl Homann, a philosopher in the tradition of liberal economists) which serves as a (...) foundation for those who advocate domain specificity and which is strongly criticized by their counterparts. This approach is also presented, since the author believes that it does not entail all of what its protagonists claim. Moreover, as argued in the last section, the purported dichotomy of universalism versus domain specificity may even be entirely overcome. The point is that Homann's ethics perhaps do not fit into the framework of Kohlberg's six stages and might therefore be reconstructed as entailing moral segmentation. However, it is well accommodated by a more comprehensive stage taxonomy suggested by the author. (shrink)

The Encyclical-Letter Caritas in Ventate by Pope Benedict XVI suggests to advance towards a new conceptualization of the tenuous relationship between economics and ethics, proposing a "new humanistic synthesis" Where social encyclicals have traditionally justified policy proposals by natural law and theological reasoning alone, Caritas in Ventate gives great relevance to economic arguments. The encyclical defines the framework for a new business ethics which appreciates allocative and distributive efficiency, and thus both markets and institutions as improving the (...) human condition, but locates their source and reason outside the economic sphere. It places a clear accent on the ontological connectedness of the economic and ethical dimensions of human action. It is the proper ordering of means towards the end of integral human development that allows mankind to leave a vicious circle of consumerism and enter a virtuous circle that applies the creativity fostered by markets. This vision implies a new model of business management that integrates considerations of vocation, purpose, and values at a theological level. (shrink)

Smokers and nonsmokers possess equal rights but those rights conflict with each other in the use of shared facilities. Medical research has established that smoking harms not only those who use the product but also those who are passively exposed to it. Laws and private regulation of smoking in shared facilities have resulted in the segregation of smokers from nonsmokers to an outright ban of tobacco use. Such controls have provided unsatisfactory results to both groups. An acceptable ethical solution, based (...) on reduction of harm and compensation, can be derived by applying Moral Audit principles, supported by economic analysis, which does not unduly curtail the rights of both parties as to the use of tobacco products. (shrink)

During the last two or three decades, various developments in the environmental sphere have led to increasing concern with our obligations to posterity and to the non‐human part of the natural world. These developments have exposed gaps in both traditional, moral, and political theory and in conventional economics. Environmental issues have exposed these gaps and have brought to the fore questions such as how far the society, with whose welfare we are concerned, includes future generations or is limited to (...) individual nations or human beings. This book examines these questions as well as related ethical aspects of environmental policy, such as environmental valuation or the equitable allocation among nations of the burden of environmental protection. (shrink)

A group of economists has recently begun addressing questions at the intersection of ethics and economics. They are preparing new definitions of individual choice that combine self-interest and other-interest, new processes of interpersonal exchange that result in cooperation rather than conflict, and new measures of social well-being that include rights as well as outcomes. This article surveys that work, and suggests areas where conceptual inputs from business ethicists are clearly needed, and where multiple opportunities for interactive research are (...) obviously present. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Kantian Ethics and Economics: Autonomy, Dignity, and CharacterIvan A. BoldyrevMark D. White. Kantian Ethics and Economics: Autonomy, Dignity, and Character. Stanford, CA: Stanford University Press, 2011. Pp. xi + 270. Cloth, $55.00.This remarkable book provides a new ethical perspective for economics based on Kantian ethics of autonomy and dignity. There are two main messages in it that I find particularly important. First, (...) Mark White derives from Kant the idea of irreducible moral principles that govern the behavior of economic agents independently of welfarist and, more generally, consequentialist concerns. These principles of duty and the “incomparable worth” (21) of human dignity, as well as justice or rights, may not be economically traded off against some other motivations; hence, they simply evade economic reasoning altogether.Second, White endorses a version of libertarian Kantianism that treats people as individuals in essence (“autonomous”) and social in orientation (respecting the rights and the choices of the others). In discussing individualism, White attacks the conventional wisdom of economics and claims that preferences alone do not account for the identity of individuals [End Page 298] in space and time, although their unique characters do. Persons should be given free choice (absent in deterministic rational-choice models) and hence responsibility for their choices that incorporates the social factors in decision-making. However, White never mentions the almost insurmountable difficulties associated with fleshing out the truly individual features of a given person. Although he allows for a person’s identity and character changing over time, he does not recognize that character itself is in many respects a social construction.White criticizes paternalistic economic policies that suggest manipulating choice environments in order to follow the “true” preferences of the individuals. Instead, real consent, as satisfying both relevant preferences and principles (e.g. rights and human dignity), is, in his view, the sole criterion for justifying particular policy measures—not Pareto-efficiency or Kaldor-Hicks compensation. Economists’ obsession with efficiency leading to the misconceived notions such as “efficient level of crime” or “manageable level of terrorism” is also severely criticized.For White, the most popular formalistic version of the categorical imperative is less important than the other two—prohibiting treating other people simply as means and instituting the “Kingdom of Ends.” Formalism is reserved merely for the negative evaluation of actions and providing strict perfect duties that give clear guidance concerning what should not be done. White’s “Kantian-economic” model of decision-making incorporates perfect duties as constraints, and imperfect (positive) duties as preferences. He also stresses that for Kant, duties derived from the imperative depend on empirical knowledge, the context of decision-making, and judgment as a unique personal interpretation of the moral law. He further emphasizes the intersubjective role of Kantian morality: moral law should be universalizable to all rational persons (the “Kingdom of Ends” formula of the imperative), whereas rationality means not just following the patterns of behavior developed in the preference-oriented choice model, but rather acting on one’s beliefs and desires or choosing not to follow them, thus exhibiting genuine autonomy.The new and important contribution to the discussion is an explicit treatment of will as an inner faculty that, together with judgment, constitutes a person’s character or “self,” and helps to overcome the mere inclination to follow duty. Will is the missing link between decision and action and should be “well-trained” for bringing about true morality.The book is clearly written, and the author has upheld the interdisciplinary appeal of the topic, demonstrating an outstanding knowledge of the vast literature on ethics (both Kantian and not) and economics. White’s emphasis on the irreducibility of moral principles is absolutely relevant for current economic and political debates. However, some reservations are in order.There is an ambiguity concerning the status of his analysis. If in its positive aspect White’s recommendations for economists is to accept the Kantian vision of morality, then almost no arguments are given for this, and his modifications of the standard choice model are introduced in an ad hoc manner, just to reconcile it with the Kantian framework. Are an individual’s decisions to act on principles and to overcome mere inclinations really... (shrink)

Within Christian social ethics different conceptions of market economy are related to different theories of justice. In this article the understanding of justice in the economic ethics of Ronald Preston will be analysed. Here will also be discussed some conceptions of justice which are developed within a Swedish research project on ethics and economics. Justice is often treated in terms of equal distribution, but there are different ideas about what objects can be distributed equally.

The gap between economic rationality, as embedded in utility maximization, and ethical rationality, identified with a set of rules that prescribe the right course of action, has been a challenging issue for economists, philosophers, and business ethicists. Despite the difference and the noncompetition between a scientific economic approach of economics and business ethics, and a behavioral and philosophical one, we highlight the importance of the Aristotelian concept of prudence or phronesis applied to business activity. Phronesis allows for a (...) conceptualization of rationality that can be simultaneously applied to economics and ethics. It also allows conceiving the intrinsically ethical nature of economic rationality. This relationship requires an appropriate education and the intervention of the state. (shrink)

Rarely in the short history of liberal-democratic government has a primer on basic liberal-democratic values and institutions been more needed than now. Popular discontent, even anger, with democratic governments has grown steadily over the past twenty years. And not since the 1930s have citizens and their elected officials been so baffled about their respective roles in the maintenance of both democratic governments and liberal economies. This book attempts to address this growing need. Especially written as a primer for courses in (...) Philosophy, Politics and Economics (PPE), it has introductory chapters on all three main disciplines. It also has chapters on the rule of law and on three important public-policy areas: Corruption, Climate, and Civil Society. Individual topics discussed include free and fair elections, populism, responsible government, republican and Westminster systems of government, regulated free markets, the Great Recession of 2008, globalization, greenwashing, identity politics, academic freedom, utilitarianism, social contract theory, positive and negative liberty, and the good life. Historically informed, The Ethics and Economics of Liberal Democracies: Foundations for PPE is sure to be of interest to students who are interested in public-policy work, as well as those who are interested in both the theory and practice of democratic government. (shrink)

The challenge that confronts corporate decision-makers in connection with global labor conditions is often in identifying the standardsby which they should govern themselves. In an effort to provide greater direction in the face of possible global cultural conflicts, ethicistsThomas Donaldson and Thomas Dunfee draw on social contract theory to develop a method for identifying basic human rights: Integrated Social Contract Theory (ISCT). In this paper, we apply ISCT to the challenge of global labor standards, attempting to identify labor rights that (...) could serve as guides for corporations producing or outsourcing outside of their home country. In addition to identifying areas of universal agreement, we also examine whether ISCT is, in fact, a sufficient basis for determining worker rights; we seek to define the parameters of the “sweatshop” problem; we include the application and results of our ISCT analysis as applied to labor standards: the global labor rights hypernorms; and conclude that ISCT is sufficient only for rights that are universal. We also discuss whether market-driven decisions can identify the boundaries of labor rights, or at least assure that market outcomes are compatible with maintaining labor rights, in order to respond to the shortcomings of ISCT. We conclude with some comments on directions of analysis for labor rights determination. (shrink)

The air pollution generated by motor vehicles and by static sources is, in certain geographic areas, a very serious problem, a problem that exists because of a failure of the marketplace. To address this marketplace failure, the State of California has mandated that by 2003, 10% of the Light-Duty Vehicle Fleet (LDV) be composed of Zero-Emission Vehicles (ZEVs). However, the policy-making process that was utilized to generate the ZEV mandate was problematic and the resulting ZEV mandate is economically unsound. Moreover, (...) an ethical analysis, based primarily upon the work of John Rawls, suggests that implementation of the California ZEV mandate is—in spite of the wide latitude that ought to be given to policy decision makers—unethical. A more ethical and economically efficient approach to the pollution caused by marketplace failure is one that relies on market incentives and thereby achieves the desired improvement in air quality by appealing both to the self-interest of motorists and to those businesses that are directly or indirectly involved with the automobile industry. Such an approach would take better advantage of the creative forces of the market and improvements in technology over time and avoid the infringements on individual liberty and fairness embodied in the ZEV mandate. (shrink)

The primary aim of the text is to introduce the reader to the relationship between economics and ethics and to the application of economic ethics in the evaluation of the market. The reader will gain insight into: * The ethical and methodological strategy of economics and criticism of the core assumptions that underpin the economic defense of free market operation. * The characteristics of different ethical theories (utilitarianism, duty and rights ethics, justice and virtue (...) class='Hi'>ethics) that can be used to evaluate the free market. * How to apply economics in conjunction with ethical theories to evaluate economic trends and policies that promote the free operation of the market and are subject to public debate. These insights will help to develop the reasoning and analytical skills needed to criticize economic analysis as well as to apply ethical concepts to moral issues in economic policy. (shrink)

In this examination of the practical and ethical implications of slave redemption the authors deal with questions such as: Does redeeming slaves actually increase the demand for -and so the number of- slaves? And what about cases where it is far from clear that redemption will improve the material condition or increase the real freedom, of a slave?