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

In addressing the theme of this special issue of Business Ethics Quarterly on business ethics in the new millennium, I want to focusnot on business ethics as an academic field of study but rather on ethics in business. By ethics in business I mean the standards for ethical conduct that are generally recognized in business and the ways in which these standards are established. Ethics in business in this sense is, at least in part, what the field of business ethics (...) studies. (shrink)

The paper explores the handling of singular analogy in quantitative inductive logics. It concentrates on two analogical patterns coextensive with the traditional argument from analogy: perfect and imperfect analogy. Each is examined within Carnap’s λ-continuum, Carnap’s and Stegmüller’s λ-η continuum, Carnap’s Basic System, Hintikka’s α-λ continuum, and Hintikka’s and Niiniluoto’s K-dimensional system. Itis argued that these logics handle perfect analogies with ease, and that imperfect analogies, while unmanageable in some logics, are quite manageable in others. The paper concludes with a (...) modification of the K-dimensional system that synthesizes independent proposals by Kuipers and Niiniluoto. (shrink)

Lewis white beck's "a commentary on kant's critique of practical reason" overlooks the fact that some of the ideas most important to kant's ethics are not presented in the second "critique". It also lacks a necessary emphasis on the notion of the highest good, The unifying theme of the work as a whole. The author traces the role of this concept throughout the second "critique" and shows how kant developed the content of the idea of the highest good in the (...) combined notions of perfection as the moral good and happiness as the natural good. (staff). (shrink)

Multi-voxel pattern recognition techniques combined with Hidden Markov models can be used to discover the mental states that people go through in performing a task. The combined method identifies both the mental states and how their durations vary with experimental conditions. We apply this method to a task where participants solve novel mathematical problems. We identify four states in the solution of these problems: Encoding, Planning, Solving, and Respond. The method allows us to interpret what participants are doing on individual (...) problem-solving trials. The duration of the planning state varies on a trial-to-trial basis with novelty of the problem. The duration of solution stage similarly varies with the amount of computation needed to produce a solution once a plan is devised. The response stage similarly varies with the complexity of the answer produced. In addition, we identified a number of effects that ran counter to a prior model of the task. Thus, we were able to decompose the overall problem-solving time into estimates of its components and in way that serves to guide theory. (shrink)

In Bergson and Intensive Magnitude: Dismantling his Critique, Florian Vermeiren argues that Bergson’s critique of intensive magnitude in Time and Free Will is inconsistent with his later philosophy, and even inconsistent with the role of a “difference in degrees of freedom” in Time and Free Will. I argue that it is rather Vermeiren’s analysis which mischaracterizes Bergson’s critique and therefore the interpretation of an inconsistency cannot stand. In the first two sections I reevaluate Bergson’s critique, showing what, according to Bergson, (...) are the good and bad senses of intensity, and how this critique allowed Bergson to institute a new conception of difference as expressed in concrete continuity. In the final section I examine the importance of infinitesimal thought in Bergson’s good sense of intensity. (shrink)

A comprehensive exploration of pragmatic themes emerging from neuroscientific research,illustrating why neurophilosophy should take this advancing pragmatist direction seriously.

Today’s international business environment is complicated by human rights abuses and social and economic repression in variouscountries. This paper introduces controversies with foreign investment in Burma to develop and describe alternative terms of global business engagement in ethically challenging settings. Two forms of engagement—unrestricted and constructive—and two forms of non-engagement—principled and sanctioned—are discussed. All four alternatives are examined for their ethical, social change, andcultural foundations. Additional considerations are posed in respect to constructive engagement, moral leadership by global businessexecutives, needs for (...) model building and evaluative research, and realities in the ethical context of global business. (shrink)

Intermediaries, such as accountants, lawyers, and bankers, are gatekeepers, which are parties whose cooperation is necessary for corporations to function and who, by withholding cooperation, are able to prevent significant corporate misconduct. The recent scandals at Enron and other corporations were due, in part, to failures by gatekeeper institutions. However, intermediaries exist primarily to provide for-fee services and not specifically to detect and deter misconduct. Insofar asthese institutions are gatekeepers or guardians, they serve reluctantly. Hence the question: What is the (...) responsibility of intermediaries to act as gatekeepers? This article argues that the appropriate moral, as well as legal, principle for justifying responsibility in a gatekeeper role is cost effectiveness. This conclusion is reached by means of a hypothetical exercise called the investors’ bargain in which investors—who bear the costs and receive the benefits of intermediaries’ gatekeeper role—are asked to choose the best means of protecting their interests. (shrink)

In their article, “Shrewd Bargaining on the Moral Frontier,” J. Gregory Dees and Peter C. Crampton challenge us with a puzzle about deception in bargaining. How can the practice of misleading others about our settlement preferences—the terms on which we are willing to come to an agreement —possibly be justified? On any standard ethical theory, they claim, Brer Rabbit's trick of professing fear of the briar patch in order to avoid being eaten by the fox would seem to be wrong, (...) and yet we read this tale to our children for their moral edification. The discussion by Dees and Crampton of this apparent inconsistency is penetrating, instructive, and well-informed. It is also a delight to read. (shrink)

In the 1990s, the role of the chief executive officer (CEO) of major United States corporations underwent a profound transformation in which CEOs went from being bureaucrats or technocrats to shareholder partisans who acted more like proprietors or entrepreneurs. This transformation occurred in response to changes in the competitive environment of U.S. corporations and also to the agency theory argument that high levels of compensation by means of stock options helped to overcome the agency problem inherent in the separation of (...) ownership and control. Some critics charge that this new CEO role is objectionable for a variety of reasons, which may also be applicable to the current financial crisis in which CEO misconduct may have played a part. These objections are based largelyon a team production model of corporate governance, which is held by these critics to be superior to the standard agent-principal model. This article examines the objections offered by critics of the changed role of the CEO and argues that their negative assessment of this development and their use of the team production model to support their conclusions are not warranted. CEOs have changed from hired hands to co-owners, and this change may have contributed in some measure to the current financial crisis. However, in determining the morally preferable role of the CEO, care must be taken not to discard what is sound in the changed role. (shrink)

One of the most beloved passages in the Zhuang-Zi text is a dialogue between Hui Zi and Zhuang Zi at the end of the “Qiu-shui” chapter. While this is one of many vignettes involving Hui Zi and Zhuang Zi in the text, this particular vignette has recently drawn attention in Chinese and comparative philosophy circles. The most basic question concerning these studies is whether or not the passage represents a substantial philosophical dispute, or instead idle chitchat between two friends. This (...) vignette has not only received much attention as of late, but commentators from at least Guo Xiang onward have taken the conversation as substantial rather than merely charming. Of the traditional readings that take the passage as substantial, there are two main strategies for taking Zhuang Zi as “winning” a substantial dispute: One that argues Zhuang Zi is undermining Hui Zi’s position without offering a positive position, and another that argues that Zhuang Zi is undermining Hui Zi’s position by offering a positive position. Guo Xiang’s “official commentary” is paradigmatic of the first “negative” strategy, while Wang Fuzhi’s reading is paradigmatic of the second “positive” strategy. The goal in the present article is to present these two strategies for reading the passage by translating and analyzing Guo’s and Wang’s annotations, thereby showing how the passage might be and has been taken as more than frivolous chitchat. (shrink)

Some decisions result in cognitive consequences such as information gained and information lost. The focus of this study, however, is decisions with consequences that are partly or completely noncognitive. These decisions are typically referred to as ‘real-life decisions’. According to a common complaint, the challenges of real-life decision making cannot be met by decision theory. This complaint has at least two principal motives. One is the maximizing objection that to require agents to determine the optimal act under real-world constraints is (...) unrealistic. The other is the precision objection that the numeric requirements for applying decision theory are overly demanding for real-life decisions. Responses to both objections are aired in the History section of this chapter. The maximizing objection is addressed with reference to work by Weirich and Pollock, while the precision objection is countered via a proposal by Kyburg and another by Gärdenfors and Sahlin. However, the Current Research section urges a different response to the precision objection by introducing a comparative version of decision theory. Drawing on Chu and Halpern’s notion of generalized expected utility, this version of decision theory permits many choices to be based on merely comparative plausibilities and utilities. Finally, the Further Research section undertakes an open-ended exploration of three of the assumptions upon which this form of decision theory (and many others) is based: transitivity, independence, and plausibilistic decision rules. (shrink)

Rent seeking by lobbying for government favors is generally thought to be wasteful. In view of this wastefulness, it is puzzling that rent seeking by corporations has not been criticized as a failure to be socially responsible or even as an unethical business practice. This article examines the compatibility of rent seeking with corporate social responsibility by utilizing Thomas Dunfee's idea of a marketplace with morality. This idea is useful for solving this puzzle because in considering whether rent seeking is (...) compatible with corporate social responsibility, it is necessary, first, to define rent seeking, which this article argues is a normative concept, and, second, to find some principled way of identifying rent-seeking behavior. It also solves the puzzle about rent seeking by revealing that the concept of rent seeking itself is of little use in determining whether certain conduct is or is not socially responsible since rent seeking activity cannot be identified without first evaluating which activity is rent seeking. (shrink)

This volume recreates the received notion of reflective equilibrium. It reconfigures reflective equilibrium as both a cognitive ideal and a method for approximating this ideal. The ideal of reflective equilibrium is restructured using the concept of discursive strata, which are formed by sentences and differentiated by function. Sentences that perform the same kind of linguistic function constitute a stratum. The book shows how moral discourse can be analyzed into phenomenal, instrumental, and teleological strata, and the ideal of reflective equilibrium reworked (...) in these terms. In addition, the work strengthens the method of reflective equilibrium by harnessing the resources of decision theory and inductive logic. It launches a comparative version of decision theory and employs this framework as a guide to moral theory choice. It also recruits quantitative inductive logic to inform a standard of inductive cogency. When used in tandem with comparative decision theory, this standard can aid in the effort to turn the undesirable condition of reflective disequilibrium into reflective equilibrium. (shrink)

I agree with much of Habermas's article ?The Language Game of Responsible Agency and the Problem of Free Will,? but concentrate on disagreements. (i) He is wrong to think the language game of neuroscience is somehow at odds with the language game of rational intentionality. I argue that they give different levels of description of the same system. He also has too narrow a conception of contemporary neurobiological research. (ii) He is mistaken in thinking there is a ?performative contradiction? in (...) engaging in research that presupposes free will in order to disprove free will. (iii) His ?epistemic dualism? is irrelevant to the issue. (iv) He has some misconceptions about the world in general, especially about ?downward causation.? He seems to think that the physical world is deterministic. It is not. Quantum indeterminacy pervades the entire universe. We have the illusion of determinism because in some systems the quantum indeterminacies cancel out at the macro level. Is the brain a deterministic system? Right now we do not know. (shrink)

The focus of this study is cognitive choice: the selection of one cognitive option (a hypothesis, a theory, or an axiom, for instance) rather than another. The study proposes that cognitive choice should be based on the plausibilities of states posited by rival cognitive options and the utilities of these options' information outcomes. The proposal introduces a form of decision theory that is novel because comparative; it permits many choices among cognitive options to be based on merely comparative plausibilities and (...) utilities. This form of decision theory intersects with recommendations by advocates of decision theory for cognitive choice, on the one hand, and defenders of comparative evaluation of scientific hypotheses and theories, on the other. But it differs from prior decision-theoretic proposals because it requires no more than minimal precision in specifying plausibilities and utilities. And it differs from comparative proposals because none has shown how comparative evaluations can be carried out within a decision-theoretic framework. (shrink)

Although enterprise risk management (ERM) has many benefits for corporations, there has been virtually no discussion of the extent to which its practice may be said to constitute corporate social responsibility. This article presents a prima facie case for the convergence of the two and examines this case through a consideration of four possible objections or challenges. The conclusion of this article is a tempered optimism that ERM has the significant, but as yet untapped, potential to constitute socially responsible activity, (...) which, if realized, would enable Adam Smith's invisible hand of the marketplace to have an expanded sweep. (shrink)

One way to recast the problem of cultural explanation in historical inquiry is to distinguish two conceptualizations involving culture: cultural meanings as contents of signification that inform meaningful courses of action in historically unfolding circumstances; and cultural structures as institutionalized patterns of social life that may be elaborated in more than one concrete construction of meaning. This distinction helps to suggest how explanation can operate in accounting for cultural processes of meaning-formation, as well as in other ways that transcend specific (...) meanings, yet are nonetheless cultural. Examples of historical explanation involving each construct are offered, and their potential examined. (shrink)

This chapter explores arguments from analogy containing ethical predicates like 'just', 'courageous', and 'honest'. The approach is Wittgensteinian in a double sense. The role of paradigm cases in ethical discourse is emphasized, first of all, and the inductive logics to be employed spring from Wittgenstein's remarks on probability (1922). Although these logics rely on a semantic concept of range, they yield results for the ethical problems treated here only if grounded in certain kinds of pragmatic consensus.

SummaryOn Kant's view, the moral individual cannot be “programmed” by sociological or educational techniques. To brainwash is to destroy freedom while to educate is to develop the capacity for freedom. Plato's proposal to invent mythic roots as incentives to moral conduct is not acceptable, since it involves not merely the propagation of falsehoods, but its success requires also a totalitarian state that destroys freedom. Not being concerned with mere legality, but with encouraging true morality, he has renounced forcing moral goodness.Marx, (...) Lenin, Stalin and Mao all proposed educational programs that put down the mythic roots of their secular religions. They project and indoctrinate into people's mind a new vision of society and man. The diabolical religion of National Socialism was inculcated by terror and totalitarianism.Kant's ethics has it mythic roots, too, which lie in Christian pietism. But his fully developed theory proscribes the use of any mythic religion not based on morality. (shrink)

Peter Geach has claimed that St. Thomas Aquinas's first and second ways are instances of composition arguments, which argue from the parts of a thing having a property to the whole thing having that property. Such arguments are not universally valid, but are valid fr some properties. The paper examines composition arguments and the literature on them, and argues that a valid composition argument can be given for the existence of an uncaused cause of all effects.

Recent experiments have renewed interest in nonlocal interpretations of quantum mechanics. The experimental observation of the violation of Bell's inequalities implies the existence of nonlocality. Bohm expressed the nonlocal connection between quantum particles through the wave function and the quantum potential. This paper shows that a similar connection exists in a relativistic dynamical theory known as parametrized relativistic quantum theory (PRQT). We present an introduction to PRQT, derive the quantum potential for a system of relativistic scalar particles, and discuss alternative (...) interpretations of nonlocality. (shrink)

HOPING TO ADVANCE OUR UNDERSTANDING OF WHAT TOLERANCE INvolves and unsettling our assumptions about its history, in this essay I take a backward glance at some of the discourse about the virtue that emerged among the first Christian apologists in the debates they carried on with their pagan critics. Along the way, several conclusions come into view: that tolerance regards the objectionable differences of those with whom we share some sort of society, that the question of social membership always precedes (...) the question of tolerance, and that the logic of Augustine's largely ignored account of the virtue emerges against the backdrop of these findings from the second, third, and fourth centuries. Compel them in and then tolerate them: In some perverse way, this might make sense after all. (shrink)

Throughout much of this century the most prominent exegetes maintained that Aquinas’s mature moral psychology is fundamentally voluntarist, that he considers the will an independent cause of action, most conspicuously in his later works. Disagreement over the character of the will’s causal authority and the composition of the list of later works did little to unsettle their shared conviction that Aristotle’s intellectualist moral psychology was improved, indeed saved, by Aquinas’s insistence that the will can move itself, at least in some (...) fashion, apart from the influence of the intellect. See Rene Antoine Gauthier and Jean Yves Jolif, Aristote: L’éthique à Nicomaque, 2nd ed., vol. 2 (Paris: Béatrice-Nauwelaerts, 1970), p. 218; Bernard Lonergan, Grace and Freedom: Operative Grace in the Thought of St. Thomas Aquinas, ed. J.P. Burns (New York: Herder and Herder, 1971), pp. 93–97; Odom Lottin, “La Preuve de al Liberté Humaine chez Saint Thomas d’Aquin,” Recherches de Theologie Ancienne et Medievale 23 (1956): 323–30; and Klaus Riesenhuber, Die Transzendenz Der Freiheit Zum Guten: Der Wille in der Anthropologie und Metaphysik des Thomas von Aquin (Munchen: Berchmanskolleg Verlag, 1971), p. 290. (shrink)

The predominant influences on health are social or upstream factors. Poverty, inadequate education, insecure and toxic environments, and inferior opportunities for jobs and positions are inequitable disadvantages that adversely affect health across the globe. Many causal pathways are yet to be understood. However, elimination of these social inequalities is a moral imperative of the first order. Some physicians by word and deed argue that medical doctors should oppose the “structural violence” of social inequalities that greatly shorten lives and wreak so (...) much suffering. (shrink)