Growing inequality and its implications for democratic polity suggest that corporate social responsibility has not proved itself in twenty-first century business, largely as it lacks clear criteria of demarcation for businesses to follow. Today the problem is viewed by many commentators as an ethical challenge to business itself. In response to this challenge, we begin by examining Porter and Kramer’s :64–77, 2011) call for a shift from a social responsibility to a shared value framework and the need to respond to (...) the problem of the ‘separation thesis’ between business and ethics :89–118, 1996; Harris and Freeman, Bus Ethics Q 18:541–548, 2008). We identify the eighteenth century economist and philosopher Adam Smith in his book The Theory of Moral Sentiments as a source for an ethical approach to business. Building on his central concept of ‘sympathy’, we introduce the idea of the Impartial Spectator Test, which we argue builds on traditional stakeholder perspectives and which provides an objective route to ethical criteria of demarcation. We conclude by assessing how this approach adds to the existing debate around social responsibility and shared value. (shrink)

The purpose of this paper is to clarify the nature of research methods in the history of economic thought. In reviewing the "techniques" which are involved in the discipline, four broader categories are identified: a) textual exegesis; b) "rational reconstructions"; c) "contextual analysis"; and d) "historical narrative". After examining these different styles of doing history of economic thought, the paper addresses the question of its appraisal, namely what is good history of economic thought. Moreover, it is argued that there is (...) a distinction to be made between doing economics and doing history of economic thought. The latter requires the greatest possible respect for contexts and texts, both published and unpublished; the former entails constructing a theoretical framework that is in some respects freer, not bound by derivation, from the authors. Finally, the paper draws upon Econlit records to assess what has been done in the subject in the last two decades in order to frame some considerations on how the past may impinge on the future. (shrink)

How management philosophy is conceived depends on if pragmatism is acknowledged or not! After having been under the main domination of management science both research and education has until recently widened its scope from a decision-making to an action-perspective. It seems to be a recent reconnection to pragmatism that makes the 2011 Carnegie report propose to rethink management in liberal arts terms, whilst the vastly influential 1959 Carnegie Pierson report distanced itself from American pragmatism thus focusing on decisions and forgetting (...) actions. Actions may contain decisions and choices but contain more than that. A decision-perspective explains by causal inference modelling choices as calculated or programmed. The action-perspectives strive at understanding intentions of agents by philosophical interpretations of action stories. It is less limited to finding the logics for constructing worlds, to paraphrase Herbert Simon’s favorite philosopher Rudolf Carnap, than embarking on plausible, although not certain, reconstructions of intentions giving meaning to action stories. This can be illustrated by turning to Elizabeth Anscombe’s Wittgensteinian investigation of intentions as Aristotelian syllogistic reasoning. Her constant analytical care to defend a philosophy of action against metaphysical assumptions and taken-for-granted “psychologisms” shows that an action-perspective is as analytic as ever one of decision-making. What differs is that the latter seems constantly attracted by programming inquiry by “scientific methodology” whilst the latter is charmed by philosophical approaches to action welcoming fascinating conundrums, enigmas and human goofs in the reality of managerial practice. Management science wants to reduce management to logics, programs and models for formal decision making whereas management philosophy is closer to spotting the artfully entrepreneurial in actions. The latter points in the direction of engineering tools, the former to appreciate the toys of management as artwork. Finally the argument of Georg Henrik von Wright helps us see that the two are philosophically compatible; for in a pragmatically inspired management philosophy actions may well contain decisions. (shrink)

The Puritan ethic is conventionally interpreted as a set of individualistic values that encourage a degree of self-interest inimical to the good of organizations and society. A closer reading of original Puritan moralists reveals a different ethic. Puritan moralists simultaneously legitimated economic individualism while urging individuals to work for the common good. They contrasted self-interest and the common good, which they understood to be the sinful and moral ends, respectively, of economic individualism. This polarity can be found in all the (...) details of their moral system, including the Puritan understanding of vocation, economic virtues, property rights, contracts, wealth and poverty, market prices and interest, and the proper economic role of government. The efforts of contemporary ethics to confront the problem of self-interest in business organizations and society would be enriched by a rediscovery of the Puritan understanding of self as a fundamental problem for any individualistic value system. (shrink)

Mainstream theories of decision making conceptualise uncertainty in terms of a well-defined probability distribution or weighting function. Following Knight, radical Keynesians consider subjective expected utility (SEU) theory and its variants as a restricted theory of decision-making applicable to situations of risk and, hence, of limited relevance to the understanding of crucial economic decisions under conditions of fundamental uncertainty in which probabilities are ill-defined, possibly non-existent. The objective of this paper is to outline a radical Keynesian theory of decision-making under uncertainty, (...) arguing that Keynes's suggestion to a two-dimensional probability-credence framework provides the basis for determining the limitations of mainstream approaches and points the way forward to the construction of a more general encompassing theory relevant to psychologists and economists outside of the Keynesian tradition. (shrink)

The concept of exploitation brings many of our ordinary moral intuitions into conflict. Exploitation—or to use the commonly accepted ordinary language definition, taking unfair advantage—is often thought to be morally impermissible. In order to be permissible, transactions must not be unfair. The claim that engaging in mutually beneficial transactions is morally better than not transacting is also quite compelling. However, when combined with the claim that morally permissible transactions are better than impermissible transactions, these three imply the counterintuitive claim that (...) it is obligatory to engage in mutually beneficial transactions. In this paper I outline the conditions that comprise this ‘paradox of exploitation’ along with a solution that involves replacing one of the original conditions with a condition I call Weak Non-worseness. The solution captures the priority of our concerns about exploitation by making a concern for the fairness of a transaction subsidiary to a concern for the welfare of the would-be exploited. (shrink)

Social scientists could learn some useful things from philosophy. Here I shall discuss what I take to be one such thing: a better understanding of the concept of utility. There are several reasons why a better understanding may be useful. First, this concept is commonly found in the writings of social scientists, especially economists. Second, utility is the main ingredient in utilitarianism, a perspective on morality that, traditionally, has been very influential among social scientists. Third, and most important, with a (...) better understanding of utility comes, as I shall try to show here, a better understanding of “personal welfare”. or, in other words, of what may be said to be in people's best interests. Such an understanding is useful to social scientists and philosophers alike, whether for utilitarian purposes or not. (shrink)

This article pursues the question whether and inasmuch theories of corporate responsibility are dependent on conceptions of managerial freedom. I argue that neglect of the idea of freedom in economic theory has led to an inadequate conceptualization of the ethical responsibilities of corporations within management theory. In a critical review of the history of economic ideas, I investigate why and how the idea of freedom was gradually removed from the canon of economics. This reconstruction aims at a deconstruction of certain (...) axioms of neoclassical economics that hamper contemporary efforts in integrating ethics firmly into management education. I intend to show by these deconstructive endeavors that a constructive use of the idea of responsible freedom could correct and complement the current quantitative focus in business theory through qualitative orientations. I argue that with the help of qualitative success criteria, the strategic integration of the tenets of both business ethics and Corporate Social Responsibility into business practice can be advanced by further research. (shrink)

This article pursues the question whether and inasmuch theories of corporate responsibility are dependent on conceptions of managerial freedom. I argue that neglect of the idea of freedom in economic theory has led to an inadequate conceptualization of the ethical responsibilities of corporations within management theory. In a critical review of the history of economic ideas, I investigate why and how the idea of freedom was gradually removed from the canon of economics. This reconstruction aims at a deconstruction of certain (...) axioms of neoclassical economics that hamper contemporary efforts in integrating ethics firmly into management education. I intend to show by these deconstructive endeavors that a constructive use of the idea of responsible freedom could correct and complement the current quantitative focus in business theory through qualitative orientations. I argue that with the help of qualitative success criteria, the strategic integration of the tenets of both business ethics and Corporate Social Responsibility into business practice can be advanced by further research. (shrink)

This article explores Adorno’s negative dialectics as a critical social theory of economic objectivity. It rejects the conventional view that Adorno does not offer a critique of the economic forms of capitalist society. The article holds that negative dialectics is a dialectics of the social world in the form of the economic object, one that is governed by the movement of economic quantities, that is, real economic abstractions. Negative dialectics refuses to accept the constituted economic categories as categories of economic (...) nature. Instead, the article argues, it amounts to a conceptualized social praxis [ begriffene Praxis] of the capitalistically constituted social relations, which manifest themselves in the form of seemingly independent economic categories. Economic nature is a socially constituted nature, which entails the class antagonism in its concept. The article concludes that for negative dialectics the explanation of real economic abstractions lies in the understanding of the class-divided nature of human practice. (shrink)

Unification of natural science and social science is a centuries-old, unmitigated debate. Natural science has a chronological advantage over social science because the latter took time to include many social phenomena in its fold. History of science witnessed quite a number of efforts by social scientists to fit this discipline in a rational if not mathematical framework. On the other hand a tendency among some physicists has been observed especially since the last century to recast a number of social phenomena (...) in the mould of events taking place in physical world and governed by well-known systems and equations of physics. It necessitated the introduction of social physics as a new inter-disciplinary subject. Obviously this attempt is aimed at explaining hitherto unsolved or highly debated issues of social science. Physicists are showing special interest on problems on economics, ranging from some topics of normative economics to the movement of prices of derivatives. Statistics has been widely used in these attempts and at least two sub-disciplines of the subject, namely, stochastic process and time series analysis deserve special mention. All these research activities gave birth to another inter-disciplinary subject named as econophysics. Interestingly, global financial crisis of 2007–08 has revived the need of determination of prices of derivatives in a more accurate manner. This article adumbrates a sketch of the theoretical synthesis between physics and economics and the role played by statistics in this process. (shrink)

In this thesis I present a rights-based theory of exploitation. I argue that successful conceptions of exploitation should begin with the ordinary language claim that exploitation involves `taking unfair advantage'. Consequently, they must combine an account of what it means to take advantage of another with an account of when transactions are unfair. Existing conceptions of exploitation fail to provide adequate accounts of both aspects of exploitation. -/- Hillel Steiner and John Roemer provide convincing accounts of the unfairness involved in (...) exploitation, but because they fail to provide restrictive `advantage taking' conditions, their theories of exploitation include cases that we would not ordinarily describe as exploitations. Ruth Sample and Robert Goodin provide accounts that place a stronger emphasis on the attitudes involved in exploitation and the processes that bring it about. Unfortunately, these theories do not properly incorporate the unfairness aspect of exploitation. Consequently, they are either self-frustrating or incomplete. -/- I provide a conception of exploitation that combines both aspects. I claim that a bilateral, strictly Pareto improving, and voluntary transaction t between A and B is exploitative just in case (1) there exists an unrectified property rights violation at some point in the history of exchanges leading to t that (2) reduces B's bargaining power by altering her status quo point, and (3) the degree to which B's preferences are satisfied in t is less than it would be had B's bargaining power not been reduced (by the alteration of her status quo point). Further, (4a) A's egoistic preferences are better satisfied in t because B's bargaining power is limited, and (4b) if the previous conditions also hold for A, then the reduction in A's bargaining power is less than the reduction in B's bargaining power. Finally, (5) A truly believes the previous conditions hold. (shrink)

¿Cuál es la utilidad de la filosofía y las humanidades? El planteo resurge, esporádicamente, en la forma de argumentos vinculados a cierta racionalidad económica de la política presupuestaria y científica, dando por sentado que estamos de acuerdo en el concepto mismo de utilidad, e ignorando con frecuencia la historicidad del término en el contexto de la evolución de las teorías económicas. Evolución que, luego de la revolución keynesiana del pensamiento disciplinar, condujo a no pocas paradojas conceptuales. Este artículo se propone (...) recapitular brevemente las vicisitudes del concepto de utilidad, para luego revisitar las mencionadas paradojas a las que condujo el planteo keynesiano, con el propósito de abordar, finalmente, algunos de los rasgos sistémicos que tal vez permitan responder oblicuamente a la impropia pregunta que da inicio al texto. (shrink)

The paper contends that neoclassical ideology stems, to a great extent, from mathematical analysis. It is suggested that mainstream economic thought can be comprehensively revisited if both histories of mathematical and economic thought are to be taken collaboratively into account. Ideology is understood as a 'social construction of reality' that prevents us from evaluating our own standpoint, and impedes us from realising our value judgments as well as our theories of society and nature. However, the mid-19th century's intellectual controversies about (...) the validity of mathematical thought, truth and knowledge can procure new interesting insights concerning the ideological stance of the first marginalists. In this respect, the methodological categories of analysis and synthesis serve as the basis for the crucial distinction between old geometry and mathematical analysis, indicating that the discipline of mathematics has its own history of fundamentally unresolved disputes. Lastly, this may also shed some light on Alfred Marshall's peculiarly reluctant attitude towards the use of mathematical analysis in his work. (shrink)

Mainstream neoclassical economics, as well as heterodox schools, should be regarded as different kinds of 'political economics'. There is no value-free economics. We therefore need to bring democracy into economics. The present challenge of sustainable development suggests that a new conceptual framework in economics is needed. In this essay, a political and democratic view of individuals, organisations, decision-making, markets, assessment of investment projects and policy options is proposed. The imperative of democracy also implies that the close-to-monopoly position of neoclassical theory (...) and method at university departments of economics has to be replaced by pluralism. There is a continued role for neoclassical theory and method, considering the fact that millions of professionals globally have been indoctrinated in this particular way of understanding efficiency and governance, but the idea that neoclassical theory is best for all purposes has to be abandoned. (shrink)

In past decades, significant work in behavioural economics has decisively revealed the limitations of the human agency model known as Homo Economicus, whereby humans are purely driven by material self-interest. These behavioural findings are, however, far from integrated in mainstream economic theory, which builds heavily on the neoclassical tradition. Unbeknown to modern economics, Bernard Mandeville and Adam Smith already proposed a richer model of human agency in which choices also depend on the desire for social approbation. The social approbation mechanism (...) complements material self-interest and provides a more diverse toolset, which is able to explain social preferences. Mainstream economic agency confines the study of human action to an artificially-limited spectrum because it reduces society to atomistic individuals who maximise one all-purpose measure of value: utility, which is often instrumented by consumption. Collective action is therefore only sustainable where material incentives are in place, as the economic agent rides for free unless financially penalised. To explain pro-social behaviour from the standpoint of self-interest, Mandeville and Smith proposed that agents also maximise social approbation, which conveys incentives to act pro-socially because the desire for others' approval encourages compliance with social norms. The upshot for collective action is that, assuming social norms represent common interests, approval from others provides an extrinsic motive for pro-social behaviour. I formalise the mechanism by proposing a simple utility function in which agents maximise social approbation as well as material self-interest. (shrink)