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.

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)

: 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)

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)

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)

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)

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)

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)

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)

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)

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)

The severe shortage of organs for transplantation and the continual reluctance of the public to voluntarily donate has prompted consideration of alternative strategies for organ procurement. This paper explores the development of market approaches for procuring human organs for transplantation and considers the social and moral implications of organ donation as both a gift of life and a commodity exchange. The problematic and paradoxical articulation of individual autonomy in relation to property rights and marketing human body parts is addressed. (...) We argue that beliefs about proprietorship over human body parts and the capacity to provide consent for organ donation are culturally constructed. We contend that the political and economic framework of biomedicine, in western and non-western nations, influences access to transplantation technology and shapes the form and development of specific market approaches. Finally, we suggest that marketing approaches for organ procurement are and will be negotiated within cultural parameters constrained by several factors: beliefs about the physical body and personhood, religious traditions, economic conditions, and the availability of technological resources. (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 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)

I present a dilemma for the market failures approach to business ethics. On an orthodox interpretation, it takes moral requirements for businesses to require them not to profit from market failures to approximate Pareto efficiency. On a moralized interpretation, it also incorporates other considerations. However, the orthodox approach is extensionally inadequate, for it is legitimate to profit from many of the allegedly ruled-out market failures. The moralized approach does better but fails to be sufficiently comprehensive. First, (...) it has not been shown why we ought to adhere to any particular limited subset of norms of and for the market. Second, we have a very general reason to mitigate the moral horror of the world, which indicates that the market failures approach is too arbitrarily restricted. (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)

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)

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)

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)

The Marketing of Education has become epidemic. Business practices and principles now commonly suffuse the approach and administration of Higher Education in an attempt to make schools both more competitive and “branded.” This seems to be progressing without reference to the significant ethical challenges as well as the growing costs to society, students, and educators in pursuing a model with such inherent conflicts. The increased focus on narrowly defined degrees targeted to specific job requirements rather than the focus on (...) raising the level of students’ ability to engage in more abstract and critical thinking is accelerating. The impact on student world views and the lack of engagement with meaningful and challenging discourse has severely impaired their ability to become both engaged and reflective. This model has also impacted faculty morale as concern with lack of academic rigor continues to grow. An ethical crisis has emerged within education internationally and intervention is urgently needed. (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)

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)

ABSTRACT:In this address I argue that different perspectives on the normative foundations of corporate responsibility reflect underlying disagreements about the ideal arrangement of tasks between market and state. I initially recommend that scholars look back to the “division of moral labor” inspired by John Rawls’ seminal work on distributive justice in order to rethink why, and to what extent, corporations take on responsibilities normally within the purview of government. I then examine how this notion is related to recent theoretical (...) work in the field of business ethics. I thereafter turn to provide a brief outline of an alternative view that sees corporations as having responsibilities in so far as markets are sites of delegated oversight over the production of social goods that might otherwise be administered by the state. (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)

Commercial genetic testing offered over the internet, known as direct-to-consumer genetic testing (DTC GT), currently is under ethical attack. A common critique aims at the limited validation of the tests as well as the risk of psycho-social stress or adaption of incorrect behavior by users triggered by misleading health information. Here, we examine in detail the specific role of advertising communication of DTC GT companies from a medical ethical perspective. Our argumentative analysis departs from the starting point that DTC GT (...) operates at the intersection of two different contexts: medicine on the one hand and the market on the other. Both fields differ strongly with regard to their standards of communication practices and the underlying normative assumptions regarding autonomy and responsibility. Following a short review of the ethical contexts of medical and commercial communication, we provide case examples for persuasive messages of DTC GT websites and briefly analyze their design with a multi-modal approach to illustrate some of their problematic implications. We observe three main aspects in DTC GT advertising communication: (1) the use of material suggesting medical professional legitimacy as a trust-establishing tool, (2) the suggestion of empowerment as a benefit of using DTC GT services and (3) the narrative of responsibility as a persuasive appeal to a moral self-conception. While strengthening and respecting the autonomy of a patient is the focus in medical communication, specifically genetic counselling, persuasive communication is the normal mode in marketing of consumer goods, presuming an autonomous, rational, independent consumer. This creates tension in the context of DTC GT regarding the expectation and normative assessment of communication strategies. Our analysis can even the ground for a better understanding of ethical problems associated with intersections of medical and commercial communication and point to perspectives of analysis of DTC GT advertising. (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)

This article reviews and criticizes Joseph Heath’s market failures approach (MFA) to business ethics. Our criticism is organized into three sections. First, we argue that, even under the ideal assumptions of perfect competition, when markets generate Pareto-efficient distributions, Heath’s approach does not rule out significant harms. Second, we show that, under nonideal conditions, the MFA is either too demanding, if efficiency is to be attained, or not sufficiently demanding, if the goal of Pareto efficiency is abandoned. Finally, (...) we argue that Heath’s appeal to regulations and specific moral requirements as a remedy for market failures is unlikely to safeguard efficiency and exposes a number of general worries regarding the moral force of the MFA. We end this article with a constructive suggestion on how to adjust the MFA to avoid these problems while preserving its contractualist and Paretian spirit. (shrink)

In light of recent doctrinal changes, we examine the confused state of U.S. insider trading law, identifying gaps that permit certain market participants to trade on the basis of material nonpublic information, and contrast U.S. insider trading doctrine with the European approach. We then explore the ethical implications of the status quo in the U.S., explaining why the dominant legal justifications for prohibiting classical insider trading and misappropriation—the fiduciary duty and property rights theories—fail to account for the wrongfulness of (...) insider trading by eavesdroppers and certain tippees. We refute common arguments for legalizing insider trading, including arguments that insider trading is a victimless crime and that the practice promotes efficiency. We explain why insider trading constitutes the moral wrong of cheating, grounding our theory in the legitimate expectations of market participants. Having considered Kantian deontology in other work, we find that virtue ethics theory offers a helpful albeit rough framework for assessing the morality of insider trading independent of its legality. We also find that social contract theories, with norms of equality of opportunity and moral desert, provide a compelling ethical basis for retaining, clarifying and broadening current legal prohibitions against insider trading. (shrink)

This paper is designed to respond to the conference theme of making business ethical specifically within a marketing context. Ethical marketing challenges marketers to move away from illusory and deceptive brand promises to make way for a form of marketing which serves the consumer with creative and truthful messages. The paper markets virtue to marketers whilst exploring existing marketing deontologies and the problem of the depersonalised relationship between marketer and consumer. ‘Marketing virtue’ is approached within an ontology that begins (...) with the marketer as a moral agent. Six virtues–based principles are proposed as a creative resource to improve the ethical performance of contemporary marketing. True prosperity for both marketer and consumer is seen within the Aristotelian concept of ευδαιμονια. (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)

Culture plays an important role in defining ethics standards because dissimilar cultures socialize their people differently, according to what is acceptable behaviour. The potential significance of ethnic groups for marketing justifies inquiry into the moral judgments, standards, and rules of conduct exercised in marketing decisions and situations arising from decisions whether or not to focus on individual ethnic groups within an economy. Identifying and targeting ethnic groups for marketing purposes are tasks fraught with many ethical difficulties. In a multicultural (...) society consisting of a dominant group and many diverse, minority groups defined by ethnicity, these problems can be expected to increase substantially. Consequently, marketers may include minority ethnic consumers in their mainstream marketing programs. In itself, this has ethical consequences. Alternatively, if marketers seek to target individual minority ethnic groups within the same economy a further set of ethical consequences needs to be considered. This paper reviews the concepts of ethnicity and ethnic groups and their relevance for marketing strategy within an economy where there is a dominant group and also significant minority ethnic groups. The ethical consequences for minority communities arising from the use of non-ethnic, mainstream marketing programs are examined. An alternative approach, ethnic marketing, is also examined and its ethical consequences in terms of other groups within the one country appraised. The ethical dilemma and tradeoffs facing marketers within advanced, culturally diverse countries are then considered. (shrink)

This is a systematic evaluation of the main arguments for and against the market as an instrument of social organization, balancing efficiency and justice. It links the distinctive approaches of philosophy and economics to this evaluation.

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)

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)

Joseph Heath states that our paper “misinterpret[s]” and so misrepresents his account. The present Commentary corrects the record. Our paper (Cohen and Peterson 2019) outlined Heath’s account on his own terms; it explained that Heath distances himself from consequentialism. But then we argued that Heath is mistaken and so offered a repaired version of the market failures approach. Our central concern, in the original paper and in this short Commentary, is showing that the economic argument for markets is (...) at the same time ethical, and then being more precise about the ethical consideration that does the work. (shrink)

This chapter considers Adam Smith’s largely empirical methodology and the relationship between that and his normative moral views in the light of its importance for understanding his work and the assessment of the relevance of his approach to contemporary circumstances. This involves an analysis of Smith’s version of Newtonianism within his theory of moral systems, noting the importance of his deistic theological assumptions for the understanding of the symbiotic relationship between Smith’s explanatory and prescriptive enterprises. The relationship (...) between Smith’s account of utility and the moral sentiments is illustrated by reference to his theory of markets. (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)

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)

Ethics is integral to the social fabric, serving as a spiritual cornerstone for the continuity and progress of society. However, business ethics appears to have shifted in recent years, with ongoing debates around the nature of ethical and unethical practices in various markets. This study investigates the dynamics of market ethics in the traditional bazaar of Yazd, Iran, against the backdrop of a perceived decline in ethical standards and fairness. Using a qualitative-interpretive approach and grounded theory methodology, we (...) conducted in-depth interviews with 21 seasoned marketers (aged 34 to 79) from the Zargari, Khan, and Shahzad Fazel markets, each with over 15 years of market experience. The analysis identified several main categories, including the erosion of trust, material preferences, the negative effect of virtual space, reducing the influence of religion, economic problems and inflation, the formation of competitive market, and lack of proper supervision. The core category, “erosion of moral capital in the marketplace,” emerged from these categories, encapsulating the broader shift. Findings indicate a notable decline in market ethics, driven by intersecting social, individual, and environmental factors. This study offers insights into the complex factors influencing ethical degradation in traditional markets and underscores the need for renewed attention to ethical standards in commercial environments. (shrink)

This thought-provoking book analyses the process of labour commodification, through which the individual’s ability to earn a basic living becomes dependent on the conditions of the market relationship. Building on the premise that the separation of a group of individuals from the means of production is an intrinsic element of capitalism, Fausto Corvino theorises that this implies a form of domination in a neo-republican sense. -/- Proposing an original theory of global justice denoted as a minimum de-commodification of labour power, (...) this book explains the ways in which this cosmopolitan principle resists the criticisms that are commonly advanced against classic theories of global justice and charts a theory falling between the neo-republican and labour republican approaches. It stimulates the debate on, and moral critique of, capitalism and the obstacles it poses to individual freedoms, with a focus on exploitation and domination. -/- Global Justice, Markets and Domination will be a key resource for students and scholars researching capitalism and analytical Marxism, political economics and human rights. It will also be of benefit to those interested in theories of global and distributive justice and the economic implications of the neo-republican theory of freedom as non-domination. (shrink)

This paper marks a radical diversion from the large body of prevailing literature in business ethics which primarily views the issue in individual-personal terms, i.e., corporate executive and employee, and suggests that making corporations more ethical would primarily come through changes in executive behavior. While this approach has strong intellectual roots in moral philosophy and religion, it fails in explaining the persistence of unethical and illegal behavior among corporations of all sizes, financial health, competitive market conditions, and, level (...) of individual executive compensation. This paper argues for a fundamentally different approach to understanding ethical behavior, or lack thereof, among corporations and their executives. It is asserted that an overwhelmingly large rationale and/or inducement for proactive ethical business behavior is rooted in competitive aspects of particular markets, and industry structures prevailing in those markets. Furthermore, while highly competitive markets may promote efficiency, they do not guarantee ethical behavior and may indeed provide greater opportunities and incentives for unethical business behavior. Thus, by following the current prognosis, we could be wasting enormous resources in terms of teaching business ethics, and creating and imposing corporate codes of conduct. We assert that these approaches would at best make a marginal improvement in the ethical performance of corporations while at the same time exacerbate the problem by ignoring more fundamental, structural issues. Imperfect markets, with their above-market profits, are a necessary but insufficient condition for corporations to behave ethically. It is only under conditions of imperfect markets that individual executives can play an important role in guiding their corporations toward greater ethical norms. These are undertaken for a variety of reasons, including, protecting a corporation''s good name, public expectations, competitive norms, and, corporate culture and individual executive''s predilections, to name a few. (shrink)

This essay argues that prediction markets, as one approach for aggregating dispersed private information, may not only be praised for their epistemic accuracy. They also feature characteristics that are morally desirable from the point of view of epistemic justice. Notably, they are a promising approach when we are trying to address testimonial injustice. The impersonality of market transactions effectively tackles the issue of identity prejudice, which underlies many forms of testimonial injustice. This is not to say that (...) prediction markets do not pose challenges for epistemic justice of their own like the risk of excluding knowers based on ability to pay. Or, in light of identity prejudice’s systematicity, the risk of discouraging some knowers because of differences in education or social background that lead to a certain unease when faced with prediction markets. The essay discusses these challenges, concedes limitations but also offers countermeasures to certain worries – e.g. hosting prediction markets on a play-money basis. Throughout, the essay addresses the question of the potential scope of using prediction markets for epistemic purposes, notably by means of the practical example of a prediction market for monetary policy. (shrink)

Ethical issues surrounding the marketing and trade of controversial products such as tobacco require a better understanding. Virginia Slims, an exclusively women’s cigarette brand first launched in 1968 in the USA, was introduced during the mid 1980s to major Asian markets, such as Japan and Korea, dominated by male smokers. By reviewing internal corporate documents, made public from litigation, we examine the marketing strategies used by Philip Morris as they entered new markets such as Japan and Korea and (...) consider the extent that the company attempted to appeal to women in markets where comparatively few women were smokers. The case study of Virginia Slims reveals that the classification of “vulnerable” consumers is variable depending on culture, tobacco firms display responsive efforts and strategies when operating within a “mature” market, and cultural values played a role in informing Philip Morris’ strategic decision to embrace an adaptive marketing approach, particularly when entering the Korean market. Finally, moral questions are raised with tobacco being identified as a priority product for export and international trade agreements being used by corporations, governments, or trade partners in efforts to undermine domestic public health policies. (shrink)

A humanoid robot named ‘Sophia’ has sparked controversy since it has been given citizenship and has done media performances all over the world. The company that made the robot, Hanson Robotics, has touted Sophia as the future of artificial intelligence. Robot scientists and philosophers have been more pessimistic about its capabilities, describing Sophia as a sophisticated puppet or chatbot. Looking behind the rhetoric about Sophia’s citizenship and intelligence and going beyond recent discussions on the moral status or legal personhood (...) of AI robots, we analyse the performativity of Sophia from the perspective of what we call ‘political choreography’: drawing on phenomenological approaches to performance-oriented philosophy of technology. This paper proposes to interpret and discuss the world tour of Sophia as a political choreography that boosts the rise of the social robot market, rather than a statement about robot citizenship or artificial intelligence. We argue that the media performances of the Sophia robot were choreographed to advance specific political interests. We illustrate our philosophical discussion with media material of the Sophia performance, which helps us to explore the mechanisms through which the media spectacle functions hand in hand with advancing the economic interests of technology industries and their governmental promotors. Using a phenomenological approach and attending to the movement of robots, we also criticize the notion of ‘embodied intelligence’ used in the context of social robotics and AI. In this way, we put the discussions about the robot’s rights or citizenship in the context of AI politics and economics. (shrink)

Artificial intelligence (AI) has sparked interest in various areas, including marketing. However, this exhilaration is being tempered by growing concerns about the moral and legal implications of using AI in marketing. Although previous research has revealed various ethical and legal issues, such as algorithmic discrimination and data privacy, there are no definitive answers. This paper aims to fill this gap by investigating AI’s ethical and legal concerns in marketing and suggesting feasible solutions.,The paper synthesises information from academic articles, industry (...) reports, case studies and legal documents through a thematic literature review. A qualitative analysis approach categorises and interprets ethical and legal challenges and proposes potential solutions.,The findings of this paper raise concerns about ethical and legal challenges related to AI in the marketing area. Ethical concerns related to discrimination, bias, manipulation, job displacement, absence of social interaction, cybersecurity, unintended consequences, environmental impact, privacy and legal issues such as consumer security, responsibility, liability, brand protection, competition law, agreements, data protection, consumer protection and intellectual property rights are discussed in the paper, and their potential solutions are discussed.,Notwithstanding the interesting insights gathered from this investigation of the ethical and legal consequences of AI in marketing, it is important to recognise the limits of this research. Initially, the focus of this study is confined to a review of the most important ethical and legal issues pertaining to AI in marketing. Additional possible repercussions, such as those associated with intellectual property, contracts and licencing, should be investigated more deeply in future studies. Despite the fact that this study gives various answers and best practices for tackling the stated ethical and legal concerns, the viability and efficacy of these solutions may differ depending on the context and industry. Thus, more research and case studies are required to evaluate the applicability and efficacy of these solutions in other circumstances. This research is mostly based on a literature review and may not represent the experiences or opinions of all stakeholders engaged in AI-powered marketing. Further study might involve interviews or surveys with marketing professionals, customers and other key stakeholders to offer a full knowledge of the practical difficulties and solutions. Because of the rapid speed of technical progress, AI’s ethical and regulatory ramifications in marketing are continually increasing. Consequently, this work should be a springboard for more research and continuing conversations on this subject.,This study’s findings have several practical implications for marketing professionals. Emphasising openness and explainability: Marketing professionals should prioritise transparency in their use of AI, ensuring that customers are fully informed about data collection and utilisation for targeted advertising. By promoting openness and explainability, marketers can foster customer trust and avoid the negative consequences of a lack of transparency. Establishing ethical guidelines: Marketing professionals need to develop ethical rules for the creation and implementation of AI-powered marketing strategies. Adhering to ethical principles ensures compliance with legal norms and aligns with the organisation’s values and ideals. Investing in bias detection tools and privacy-enhancing technology: To mitigate risks associated with AI in marketing, marketers should allocate resources to develop and implement bias detection tools and privacy-enhancing technology. These tools can identify and address biases in AI algorithms, safeguard consumer privacy and extract valuable insights from consumer data.,This study’s social implications emphasise the need for a comprehensive approach to address the ethical and legal challenges of AI in marketing. This includes adopting a responsible innovation framework, promoting ethical leadership, using ethical decision-making frameworks and conducting multidisciplinary research. By incorporating these approaches, marketers can navigate the complexities of AI in marketing responsibly, foster an ethical organisational culture, make informed ethical decisions and develop effective solutions. Such practices promote public trust, ensure equitable distribution of benefits and risk, and mitigate potential negative social consequences associated with AI in marketing.,To the best of the authors’ knowledge, this paper is among the first to explore potential solutions comprehensively. This paper provides a nuanced understanding of the challenges by using a multidisciplinary framework and synthesising various sources. It contributes valuable insights for academia and industry. (shrink)

One challenge that globalization has brought to business is that firms, as they expand their market globally through cross-border alliances, need to deal with partner firms from countries of different religious background. The impact of a country’s dominant religion on its firms’ international market entry mode choices has not been examined in traditional approaches. Focusing on hypothesizing the influence of Christian beliefs and atheism (i.e., the absence of belief in any deities), this research aims to fill the gap by exploring (...) religion’s role in providing moral restraint on managers’ propensity for opportunism, which in turn affects these managers’ choices of their firms’ international market entry via non-equity alliances or joint ventures. A study of 22,156 cross-border alliances formed in 48 industries world-wide over 9 years provides new insight toward understanding religion’s influence on firms’ international market entry mode decisions through the ethical dimension of strategic leadership. (shrink)

How do markets principally contribute to society, and do they all contribute in the same ways? The logic of common and private goods provides much-needed clarity in grappling with the constitution and contribution of markets. The root challenge of the market is that impersonal private exchange cannot directly promote any common goods, so it appears only capable of promoting the flourishing of society “by accident,” as it were. As responses, the “spontaneous” approach regards both markets and (...) politics as unintended orders of private ends, while a “instituted” model subordinates thin exchange to the thick communal goals of sustaining politics, and the “civil” economy claims that market exchange is itself a form of fraternal solidarity around common goods. All three rival models capture some exchange contexts, but none works for all markets. I advocate a meta stance of “market pluralism,” acknowledging that different markets’ moral architectures could match any of the three models, in line with empirical findings that different industries and market systems vary significantly in their modes of coordination, human relations, and major objectives. (shrink)

Writing in the Business and Politics, Santos and Laczniak 2012) formulated a normative, ethical approach to be followed when marketers e ngage impoverished market segments. It is labeled the integrative justice model. As noted below, that approach called for authentic engagement, co-creation, and customer interest representation, among other elements, when transacting with vulnerable market segments. Basically, the IJM derived certain operational virtues, implied by moral philosophy, to be used when marketing to the poor. But this well-intentioned (...) class='Hi'>approach raises a significant “So what?” question. Are such sentiments anything but lofty aspirations for idealists or are there steps to be taken by society and business managers of goodwill to make the adaptation of the IJM by corporations more likely and pragmatic? This paper begins to layout a roadmap that shows “how and why” the IJM might more likely be vitalized. The crux, as described below, is found in the transformational justice dimensions that are embedded in institutions ; such external institutions provide a “power” impetus to assure the ethical rights claims that impoverished consumers have owed to them. In this way, the ideal exchange characteristics for bottom of the pyramid markets argued for in the IJM can become actively transformational. The main contribution of this paper is that it begins to chart out the institutional system elements that need to exercise power in order to deliver a “fairer” marketplace for BoP consumers. (shrink)