Cognitive theory and moral behavior: The contribution of F. A. Hayek to business ethics [Book Review]

Journal of Business Ethics 45 (1-2):149 - 165 (2003)
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Abstract

This paper shows how business ethics as a concept may be approached from a cognitive viewpoint. Following F. A. Hayek''s cognitive theory, I argue that moral behavior evolves and changes because of individual perception and action. Individual moral behavior becomes a moral rule when prominently displayed by members of a certain society in a specific situation. A set of moral rules eventually forms the ethical code of a society, of which business ethics codes are only a part. By focusing on the concept of "limited" or "dispersed knowledge" that underlies the cognitive approach, I show that universal ethical norms that should lead to defined outcomes cannot exist. This approach moreover shows the limits of deliberate rule-setting. Attempts to deliberately impose universal ethical rules on societies may turn out to be harmful for societal development and lead to an abuse of governmental power.

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