In this article, we use ideas from stakeholder capital maintenance theory to address tensions in allocating firm profits between stockholders and other stakeholders. We utilize a mediative thought experiment to conceptualize how multiple stakeholder interests might better be served, such that genuine firm profits (from new value creation) versus artificial firm profits (from non-wealth-producing transfers) may be identified and incentivized. We thereby examine how such accounting transfers can be envisioned as stakeholder capital to be maintained for the benefit of both (...) the firm and the economy. We present examples to illustrate the hypothetical model proposed and its implications. (shrink)

ABSTRACT:Profit maximizers have reasons to agree with stakeholder theorists that managers may need to consider different values simultaneously in decision making. However, it remains unclear how maximizing a single value can be reconciled with simultaneously considering different values. A solution can neither be found in substantive normative philosophical theories, nor in postulating the maximization of profit. Managers make sense of the values in a situation by means of the many thick value concepts of ordinary language. Thick evaluation involves (...) the simultaneous consideration of different values: making sense of a value always involves knowing how to engage with it given the other values in the situation. This also goes for profit: maximization is only one way of engaging with the value of profit, and grasping whether maximization is appropriate involves considering other values. We discuss some consequences of our approach for stakeholder theorists and profit maximizers. (shrink)

Profit Sharing is one of the reinforcement learning methods. An agent, as a learner, selects an action with a state-action value and receives rewards when it reaches a goal state. Then it distributes receiving rewards to state-action values. This paper discusses how to set the initial value of a state-action value. A distribution function ƒ( x ) is called as the reinforcement function. On Profit Sharing, an agent learns a policy by distributing rewards with the reinforcement function. On (...) Markov Decision Processes (MDPs), the reinforcement function ƒ( x ) = 1/ L x is useful, and on Partially Observable Markov Decision Processes (POMDPs), ƒ( x ) = 1/ L w is useful, where L is the sufficient number of rules at each state, and W is the length of an episode. If episodes are always long, the value of the reinforcement function is little. So the differences of rule values become little, and the agent learns little by using the roulette selection as an action selection. This problem is called as Learning Speed Problem. If the value of the reinforcement function for an action is very higher than its state-action value, an agent will not select other action. There is a problem when its action is not a optimal action. This problem is called as Past Experiences Problem. This paper shows that both Learning Speed Problem and Past Experiences Problem are caused by the bad setting between the initial values of a state-action values and the function values of a reinforcement function. We propose how to set the initial values of a state-action values at each state. The experiment shows that an agent can learn correctly even if the length of episode is large. And shows the effectiveness on both MDPs and POMDPs. Our proposed method focuses on the initialization of state-action values and does not limit reinforcement functions. So it can apply to any reinforcement function. (shrink)

In the wake of business scandals at Enron, Arthur Andersen, Global Crossing, Tyco—the list grows daily—there is an increasing sense among employees, executives, investors, and the public that the “anything goes” culture of the New Economy is over. Today, businesses must act responsibly, transparently, and with integrity. Using in-depth case studies and examples from over 50 companies that range from Starbucks to Citigroup, General Motors to General Electric, DuPont to Dell, Ira A. Jackson, former director of the Center for Business (...) and Government at Harvard’s Kennedy School, shows the quantifiable and enduring business advantage to “doing the right thing.” Companies that give back to their employees and society—focusing on values and purpose as well as profitability—often gain commpetitive advantage and improve their brand image, consumer loyalty, and employee satisfaction. Identifying seven principles of making values integral to business processes and practices, PROFITS WITH PRINCIPLES opens the door to a new kind of capitalism, providing a wealth of practical recommendations companies of all sizes can model their own efforts after. (shrink)

The relevance of Marx’s theory of value and his ‘law of the tendency of the rate of profit to fall’ to the analysis of the financial crisis of 2007–8 and the ensuing global slump is affirmed. The hypertrophic growth of unproductive constant capital, including the wages of ‘socially necessary’ unproductive labour and tax revenues, is identified as an important manifestation of an historical-structural crisis of capitalism, alongside the increasing weight of fictitious capital and the proliferation of fictitious profits in (...) the lead-up to the financial crisis. These phenomena have obscured the deepest roots of the global slump in the long-term profitability problems of productive capital – that is, in a crisis of surplus-value production. With these considerations taken into account, a better empirical assessment of trends in the composition of capital becomes possible, and with it a more accurate understanding of the impact of the ongoing displacement of living labour from production on the average rate of profit and the future of US and global capitalism. (shrink)

ABSTRACTWe consider whether and under what conditions it is morally illicit to profit from poverty. We argue that when profit counterfactually depends on poverty, the agent making the profit is morally obliged to relinquish it. Finally, we argue that the people to whom the profit should be redirected are those on whom it counterfactually depends.

This study examines the deliberations of professional MBA students when presented with a dilemma that weighs the difference between commitments to profit-maximization against concerns for fired workers who would need to seek a new job during a recession. Using content analysis, accounting, economic, and ethically based rationales that differ from the profit-maximizing recommendation are categorized. Results also show that those who make non-profit-maximizing recommendations consider, but ultimately reject the profit-maximizing approach to layoffs.

Suppose we morally ought to maximise social welfare. Suppose profit maximisation is a means to maximise social welfare. Does this imply that we morally ought to maximise profits? Many proponents of the view that we have a moral obligation to maximise profits (tacitly) assume the validity of this argument. In this paper, we critically assess this assumption. We show that the validity of this argument is far from trivial and requires a careful argumentative defence.

Ethical considerations, especially those religiously driven, play a significant role in shaping business conduct and priorities. Profit levels and earnings constitute an integral part of business considerations and are relevant and closely linked to prevailing ethics. In this paper, Islamic prescriptions on profit maximization are introduced. Islamic business ethics are outlined as well. It is suggested that while Islamic teaching treats profits as reward for engaging in vital activities necessary for serving societal interests, profit maximization is not (...) sanctioned and therefore should not be the goal of ethically guided business ventures. (shrink)

According to the commonsense view of civic virtue, the places to exercise civic virtue are largely restricted to politics. In this article, I argue for a more expansive view of civic virtue, and argue that one can exercise civic virtue equally well through working for or running a for-profit business. I argue that this conclusion follows from four relatively uncontroversial premises: (1) the consensus definition of “civic virtue”, (2) the standard, most popular theory of virtuous activity, (3) a conception (...) of the common good widely shared by liberal political philosophers, and (4) the mainstream economic theory of for-profit business. (shrink)

In this study we seek to determine whether catastrophic events lead to corporate charitable giving unrelated to levels of firm profitability. We examine the issue relative to the corporate philanthropic response to the 9/11 terrorist attacks of 2001. Based on a sample of 489 Fortune 500 companies, we find that differences in the extent of corporate contributions following 9/11 are positively and significantly associated with differences in firms' profitability. Further, while the degree of connection to the catastrophic event led to (...) higher levels of giving in comparison to the contributions of less connected firms, differences in the extent of philanthropy are still␣related to short-term profitability for the more connected firms. The study thus provides evidence suggesting that even in the wake of catastrophic events, corporate philanthropic giving is constrained by economic concerns. (shrink)

Our economy is neither overwhelmingly capitalist, as Marxist political economists argue, nor overwhelmingly a market economy, as mainstream economists assume. Both approaches ignore vast swathes of the economy, including the gift, collaborative and hybrid forms that coexist with more conventional capitalism in the new digital economy. Drawing on economic sociology, anthropology of the gift and heterodox economics, this book proposes a groundbreaking framework for analysing diverse economic systems: a political economy of practices. The framework is used to analyse Apple, Wikipedia, (...) Google, YouTube and Facebook, showing how different complexes of appropriative practices bring about radically different economic outcomes. Innovative and topical, Profit and Gift in the Digital Economy focusses on an area of rapid social change while developing a theoretically and politically radical framework that will be of continuing long-term relevance. It will appeal to students, activists and academics in the social sciences. (shrink)

The efficiency argument for profit maximization says that corporations and their managers should maximize profits because this is the course of action that will lead to an ‘economically efficient’ or ‘welfare maximizing’ outcome. In this paper, I argue that the fundamental problem with this argument is not that markets in the real world are less than perfect, but rather that the argument does not properly acknowledge the personal sphere. Morality allows each of us a sphere in which we are (...) free to pursue our personal interests, even if these are not optimal from the social point of view. But the efficiency argument does not come to terms with this feature of social life. (shrink)

This article argues the philosophical concerns and foundational challenges raised by a for-profit model of education. The for-profit model is governed by a business paradigm, without reference to the context in which it is found. The authors explore primary ethical questions and challenges presented by this model. As such, they present potential solutions to the growing problem in higher education as a corporate entity. The authors introduce a potential model for analysis of the issues and suggest an interventional (...) technique with concrete directions for change. Universities are on the threshold of a transformation which can no longer be isolated from wider society. This environment awakened the critical task of blending corporate success with educational integrity. (shrink)

This paper presents a short classroom exercise to stimulate student discussion about the rights of shareholders versus the rights of stakeholders. Students are challenged to identify and evaluate their preconceived notions of what constitutes excessive profits. The exercise illustrates why the realization of a large return on investment cannot be used as prima facie evidence that a firm exploited employees, customers, or other stakeholders. This concept is illustrated using datafrom the pharmaceutical industry.

The idea that socially responsible investments can be viewed in terms of real options is relatively new. We expand on this notion by demonstrating how real option theory, within a Bayesian decision-making framework, can be used by managers to help when making green technology investment decisions. The Bayesian decision framework provides a more flexible approach to investment decision making because it adjusts for new information. Responding to a call for multidisciplinary and multifaceted research in environmental sustainability, this paper integrates ethics, (...) finance, and information technology by viewing investments in environmentally friendly technology as a profit-driven CSR real option. Our model provides managers with the analytic tool needed to make the business case for CSR initiatives providing an opportunity for firms to create economic, social, and ecological solutions that benefit all stakeholders. The practical applicability of our model is demonstrated in an illustrative case scenario based on real data. (shrink)

This article shows how research on the social structure of markets may contribute to the analysis the growing income inequality in contemporary capitalist economies. The author proposes a theoretical link between embeddedness and social stratification by discussing the role of institutions and networks in markets for the distribution of economic profits between firms. The author claims that we must understand profit and free competition as opposites, as economic theory does. In the main part of the article the author illustrates (...) six typical mechanisms of rent extraction from networks or formal and symbolic rules that embed markets. They emerge from material as well as symbolical access to and influence on the orientation of other market actors. Social structures in markets lead to unequal chances for rent extraction, even if actors produce them for coordination rather than for accumulation purposes. This is how market sociology and theory of capitalism can be linked more closely. (shrink)

Following Schleiermacher, who was unable to account for several oddities in the dialogue, some scholars consider the Hipparchus a spurious Platonic work. This essay, by means of a dramatic re-enactment of the dialogue, accounts for those oddities. It demonstrates that the comrade is a recent immigrant to Athens who, having been deceived by a moneychanger in the agora, accuses ‘lovers of gain’ of being ‘profiteers’. Socrates exposes the comrade as fearful of risk-taking and then defends the reputation of Hipparchus, the (...) Athenian King who encouraged commercial development. By further correcting the democratic account of his assassination, Socrates exposes the comrade’s envy, which hides his own profiteering ambitions. The discussion points to a series of dualities regarding commerce and philosophy, including both the generating and non-generating qualities of the philosophic life. It also reveals the rural origins of Socrates’ ‘new’ accusers, and the notion of justice held by them. (shrink)

In this paper, we consider profit sharing that is one of the reinforcement learning methods. An agent learns a candidate solution of a problem from the reward that is received from the environment if and only if it reaches the destination state. A function that distributes the received reward to each action of the candidate solution is called the reinforcement function. On this learning system, the agent can reinforce the set of selected actions when it gets the reward. And (...) the agent should not reinforce the detour actions. First, we will propose a new constraint equation about reinforcement functions to distribute the reinforcement values on the non-detour actions. If we use the reinforcement function to satisfy the constraint equation, the agent can select the non-detour actions directing to the destination state. Next, it is shown that the reinforcement function can be constant after learning process to suppress the selection of detour actions. Lastly, in computer simulations for maze problems, we show that the learning performance of agents does not depend on the size of environment. (shrink)

The profit motive refers to what is generally taken to be the underlying motivation of business and commercial activity: to collect revenues in excess of costs or, more simply, to make money. While both “profit” and “profit motive” may be given more technical definitions in economics, the latter's meaning is typically broader in philosophical discussions and so, for example, even managers of nonprofit organizations may be accused of sometimes acting from a profit motive. The profit (...) motive is typically the object of ambivalent moral attitudes in present-day society: on the one hand, the plethora of commodities and services made possible by the modern market economy, fuelled to a large extent by the profit motive, are easily recognizable. On the other hand, it is generally regarded as a serious moral criticism to say of a certain commercial agent that he or she is motivated by profit alone, and pecuniary motives are often associated with selfishness and greed (see Egoism). (Compare comments like: “While it perhaps was a good thing that company X supported this social venture, they are not to be trusted – they only did it for the money!”). (shrink)

This article develops contractarian business ethics by applying social contract arguments to a specific question: What are the pre-legal (or moral) rights and responsibilities of corporations? The argument uses a hypothetical social contract to show the existence of for-profit corporations in democratic capitalist societies is consistent with Rawls’s fundamental principles of justice. Corporations ought to have recognised their rights to be autonomous, to pursue private purposes, and to engage in economic activities. Corporations have a responsibility to respect the freedom (...) and human rights of all people, and not to interfere with government programs that ensure people have the education and training they need to find and keep corporate employment and that provide a safety-net that prevents destitution. If corporations have any other rights and responsibilities, those rights and responsibilities need to be established by actual social contracts, probably in the form of legitimate democratic processes. (shrink)

Canadian capitalism has entered a period of intensified volatility. Rooted in persistent profitability problems, it is facing several challenges, including economic stagnation, a household-debt driven real-estate and construction boom, and an increasingly fragile financial system. Drawing on a classical Marxist framework of capitalist crisis, this article explores the dynamics of instability in Canada and the response of the capitalist state, which centres on increased efforts to export oil and gas to China, thereby deepening conflict with Indigenous land defenders, and a (...) redoubling of the assault on workers to increase the rate of exploitation. (shrink)

From the perspective of the present day, Puritan-inspired capitalism seems to have succeeded globally, including in India. Connected to this, short-term profit-orientation in management seems to constrain the scope of different management approaches in a tight ideological corset. This article discusses the possibility of replacing this Puritan doctrine with the crucial elements of Indian philosophy: Karma and samsara. In doing so, the possibility of revising the guiding principles in capitalist management becomes conceivable, namely the monetary focus of profit-orientation (...) and its short-term orientation. This perspective allows a detachment of the concept of profit from the realm of money, as the seemingly only objectifiable measure of profit. Furthermore it allows a removal of the expectation that every “investment” has to directly “pay off”. A karmic view offers management a possible facility for being more caring about the needs and fates of other stakeholders, as profit-orientation would no longer be attached as a factual constraint to merely accumulate money. (shrink)

This article revolves around the debate surrounding the lack of a coherent definition for corporate social responsibility (CSR). I make use of Jacques Derrida’s theorizing on contested meaning to argue that CSR’s ambiguity is actually necessary in light of its functional role as a “supplement” to corporate profit-seeking. As a discourse that refuses to conclusively resolve the tension between profit-seeking and prosociality, CSR expresses an important critical perspective which demands that firms act responsibly, while retaining the overall corporate (...) frame of shareholder supremacy. CSR does this by ambivalently affirming both profit-seeking and prosociality, a necessary contradiction. Attempts to reduce CSR’s ambiguity can thus only succeed by undermining its viability as a normative discourse that captures how certain elements of society understand how firms should act. The analysis suggests that greater scholarly attention is needed with regard to the material discursive environments within which discourses such as CSR are deployed. A discursive approach to research could thus benefit future practitioners, who have to act according to fluid standards of responsibility that cannot be authoritatively defined, but which can be better understood than they are at present. (shrink)

Suppose we morally ought to maximize social welfare. Suppose profit maxi­mization is a means to maximize social welfare. Does this imply that we morally ought to maximize profits? Many proponents of the view that we have a moral obligation to maximize profits (tacitly) assume the validity of this argument. In this paper, we critically assess this assumption. We show that the validity of this argument is far from trivial and requires a careful argumentative defence.

In launching modern economics, Adam Smith paved the way for laissez-faire capitalism, Marxism, and contemporary social science. This book scrutinizes Smith's disparagement of politics and religion to illuminate the subtlety of his rhetoric, the depth of his thought, and the ultimate shortcomings of his project. The author analyzes Smith's ideas on government, justice, human psychology, and international relations, stressing Smith's efforts to elevate wealth at the expense of citizenship and to replace normative political philosophy with historical theorizing and empirical modeling (...) that emphasize economic causes. The book also provides the most comprehensive interpretation available of Smith's views on religion, examining the discrepancies between The Wealth of Nations and The Theory of Moral Sentiments. The concluding chapter appraises the demise of communism in light of the Marxian emancipation of economics from politics and religion. (shrink)

The question I wish to take up in this paper is whether competitive markets, as mechanisms that initiate the distribution of scarce goods, allocate those goods in accordance with what participants in those markets deserve. I want to argue that in general people do not in fact deserve what they get from market interactions, when “what they get” is determined by the competitive forces coming to bear on the market. This more general claim is meant to apply to all participants (...) in the market. However, my strategy here is to focus on the particular case of the role of entrepreneurs, as I will define them, and whether they deserve the profits they reap in a competitive capitalist market. In particular, I will argue that the claim that entrepreneurs deserve their profits, when spelled out precisely, is indeed not plausible. Generalizing from this claim, I want to suggest how moral desert is inappropriate as a justification of market shares whenever competition determines the magnitude of those shares. I should stress, though, the particularity of my central claim: it is that “ entrepreneurs do not deserve their profits.” This is not to say that, for other reasons, people should not receive the rewards doled out by a market. My claim is only that desert has nothing directly to do with it. I am deviating significantly here from the usual strategy for denying the relevance of desert claims to principles of distributive justice. (shrink)

This essay addresses the need for a new model of corporation, one which has corporations responsible for the environment in which they operate, and for nurturing all human beings who come into contact with them, and able to deliver sufficient returns to their investors. The main thesis is that the current paradigm of corporations, their model of governance, and their most fundamental priorities and objectives drives them into the selfish pursuit of profits at the expense of environmental and societal concerns, (...) respect for people, and equitable distribution of wealth. With the advent of a free market economy in Hungary, there is an extraordinary opportunity to invent a corporate model, free of western history, yet informed by it. This is a time when it is critical to resist the pull to adopt the prevailing model of the western world, and to begin the invention of a new model in which concern for profits and growth is held on an equal footing with concern for people, for equity, for values being lived, such that the interests of all humankind and our environment are taken care of. This essays postulates what the new measures of corporate performance would need to be and examines the new accountabilities of managers and leaders that would follow. (shrink)

(2010). For-Profit Clinical Trials in Developing Countries—Those Troublesome Patient Benefits. The American Journal of Bioethics: Vol. 10, No. 6, pp. 52-54.

Economic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. Many large capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so, thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper argues that the goal of increasing economic profit is fully consistent with the corporation doing good for society. However, there (...) is little justification for corporations to transfer the whole economic profit to shareholders. Economic agents entitled to receive the economic profit are precisely those who create this profit, namely the internal entrepreneurs. (shrink)

This article clarifies the relationship between profits and principles by distinguishing four alternative perspectives: the win-win perspective in which ethical behaviour generates the highest profits; a licence-to-operate perspective in which a minimum ethical performance is required to receive legitimation from the society; an acceptable profits perspective, in which an acceptable profitability is required to assure the financial continuity; and an integrated perspective. These four perspectives are illustrated by statements from Shell reports and from interviews with managers of a large European (...) retail company. (shrink)

N. Scott Arnold has argued forcefully that, for the most part, those who win profits (and suffer losses) in a market economy deserve them. According to Arnold, profit opportunities arise when there are malallocations of resources, which entrepreneurs initiate changes in production to correct. If they succeed, they simultaneously further the essential point of the market system — to meet the needs and wants of consumers — and they make profits; if they do not, then they stand to suffer (...) losses. I argue that the structure of modern corporate enterprises tends to channel income into the hands of those whose entrepreneurial contribution is diminishingly small — namely stockholders — and away from those within the firm who genuinely participate in the entrepreneurial role. (shrink)

The authors propose a model for business ethics which arises directly from business practice. This model is based on a behavioral definition of the economic theory of profit maximization and situates business ethics within opportunity costs. Within that context, they argue that good business and good ethics are synonymous, that ethics is at the heart and center of business, that profits and ethics are intrinsically related.

Role of the entrepreneur in a distinct role of profit.

For-profit degree granting institutions are a growing and under-researched market segment that represents an extreme level of business involvement in academe. Permitting such institutions to grant degrees is a concern because the profit motive gives an incentive to operators to misrepresent the quality and benefits of such degrees. This paper addresses the issue of how adequately government quality assurance processes are able to protect the public interest. The degree program approval processes in three countries are evaluated using the (...) UNESCO guidelines for cross-border quality provision in higher education as an internationally accepted standard of quality assurance. (shrink)

Mobile health applications (‘health apps’) that promise the user to help her with some aspect of her health are very popular: for-profit apps such as MyFitnessPal, Fitbit, or Headspace have tens of millions of users each. For-profit health apps are designed and run as optimization systems. One would expect that these health apps aim to optimize the health of the user, but in reality they aim to optimize user engagement and, in effect, conversion. This is problematic, I argue, (...) because digital health environments that aim to optimize user engagement risk being manipulative. To develop this argument, I first provide a brief analysis of the underlying business models and the resulting designs of the digital environments provided by popular for-profit health apps. In a second step, I present a concept of manipulation that can help analyze digital environments such as health apps. In the last part of the article, I use my concept of manipulation to analyze the manipulative potential of for-profit health apps. Although for-profit health can certainly empower their users, the conditions for empowerment also largely overlap with the conditions for manipulation. As a result, we should be cautious when embracing the empowerment discourse surrounding health apps. An additional aim of this article is to contribute to the rapidly growing literature on digital choice architectures and the ethics of influencing behavior through such choice architectures. I take health apps to be a paradigmatic example of digital choice architectures that give rise to ethical questions, so my analysis of the manipulative potential of health apps can also inform the larger literature on digital choice architectures. (shrink)

Any decision by a company regarding the use of profits to pay tax, remuneration or shareholder returns has ethical implications. Sharing Profits reviews high-profile ethical issues facing companies in how profits are used, and proposes a framework for understanding the ethical implications of decisions.

To apply reinforcement learning to difficult classes such as real-environment learning, we need to use a method robust to perceptual aliasing problem. The exploitation-oriented methods such as Profit Sharing can deal with the perceptual aliasing problem to a certain extent. However, when the agent needs to select different actions at the same sensory input, the learning efficiency worsens. To overcome the problem, several state partition methods using history information of state-action pairs are proposed. These methods try to convert a (...) POMDP environment into an MDP environment, and thus they are sometimes very useful. However, their computation cost is very high especially in large state spaces. In contrast, memory-less approaches try to escape from the aliased states by outputting actions stochastically. However, these methods output actions stochastically even in unaliased states, and thus the learning efficiency is bad. If we desire to guarantee the rationality in POMDPs, it is efficient to output actions stochastically only in the aliased states and to output one action deterministically in the other unaliased states. Hence, to discriminate between aliased states and unaliased states, the utilization of χ² -goodness-of-fit test is proposed by Miyazaki et al. They point out that, in aliased states, the distributions of the state transitions by random search and a particular policy are different. This difference doesn't occur owing to non-deterministic actions. Hence, if the agent can collect enough samples to implement the test, the agent can distinguish between aliased states and unaliased states well. However, such a test needs a large amount of data, and it's a problem how the agent collects samples without worsening learning efficiency. If the agent uses random search in the course of learning, the learning efficiency worsens especially in unaliased states. Therefore, in this research, we propose a new method called Extended On-line Profit Sharing with Judgement (EOPSwJ) to detect important incomplete perception, which doesn't need large computation cost and numerous samples. We use two criterions for detecting important incomplete perceptions to attain a task. One is the rate of transitions to each state, and the other is the deterministic rate of actions. We confirm the availability of EOPSwJ using two simulations. (shrink)

About the author -- The case for integrity -- The need for a pro-integrity business model -- Heightened integrity and superior profits -- Making integrity pay -- The pro-integrity business model in practice -- Stakeholders : the specific connection -- Vision: beyond aspirational and motivational -- Integrity : embody -- Leadership : demonstrated tone -- Staff: more than engagement -- Feedback : closing the feedback loop -- Superior financial performance -- The requirement -- Prerequisites -- References -- Index.

Research by Reidenbach and Robin (1990) provides a means to study the differential impact of three dimensions of attitude toward ethics: moral equity, relativism, and contractualism. It is hypothesized that moral equity will be the most significant predictor of ethical judgment and intent to act. It is also hypothesized that Machiavellianism and profit will affect relativism and contractualism dimensions, but not moral equity. Additionally, it is hypothesized that Machiavellianism will interact with profit to affect intent to act. Moral (...) equity was found to be the only predictor of ethical judgment, and moral equity and contractualism were predictors of intent to act. Machiavellianism impacted contractualism, but not relativism. Corporate profit did not affect either ethical judgment or intent to act, and did not interact with Machiavellianism. Implications for business ethics education and training are discussed. (shrink)

In both the literature and practice, it has been advocated that companies should have a profit cap. Utilizing corporate social contract theory, this article posits that under at least three conditions, companies do not have a general moral duty to cap their profits. These conditions entail that a company adheres to the contracting principles of its stakeholder relationships, that the constitutive stakeholders of the company have not otherwise stipulated in the corporate social contract, and that the macrosocial contract does (...) not prescribe otherwise to the company. The first two conditions are company-specific and hence do not constitute a generic moral imperative, and there is currently insufficient evidence for the third, generic condition. (shrink)

This article looks at social entrepreneurs that operate for-profit and internationally, offering that international for-profit social entrepreneurs (IFPSE) are of a unique type. Initially, this article utilizes the entrepreneurship, social entrepreneurship, and international entrepreneurship literatures to develop a definition of the IFPSE. Next, a proposed model of the IFPSE is built utilizing the dimensions of mindset, opportunity recognition, social networks, and outcomes. Case studies of three IFPSE are then used to examine the proposed model. In the final section, (...) findings from the case studies are used to examine the proposed model and more fully elucidate the dimensions of the IFPSE. (shrink)

Primeaux and Stieber clearly articulate that good ethics maximize profits. The authors show that in the long run business must operate within the value systems of a society.

There is a systemic condition inherent in contemporary markets that compel managers not to pursue more morally preferable initiatives if those initiatives will require actions that conflict with profit maximization. Normative arguments for implementing morally preferable practices within the existing system fail because they are insufficient to counter-act the systemic conditions affecting decision-making that is focused on maximizing profit as the primary operational value. To overcome this constraint we must elevate a more normatively preferable value, ‚ideal environmental sustainability,’ (...) to the level of being the primary filtering value through which other competing values are evaluated, prioritized, and implemented. In order for this to occur in practice, a change must be made relative to the laws, rules, and regulations that define and guide the market. This can be done by suitably defining the epistemic constraint of impartiality utilizing Rawls’ notion of a ‚veil of ignorance’ as a heuristic device. (shrink)