David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Economics and Philosophy 28 (3):311-331 (2012)
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 or 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.
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References found in this work BETA
Tom L. Beauchamp, Norman E. Bowie & Denis Gordon Arnold (eds.) (2008). Ethical Theory and Business. Pearson/Prentice Hall.
John Jamieson Carswell Smart & Bernard Williams (1973). Utilitarianism: For and Against. Cambridge University Press.
Michael C. Jensen (2002). Value Maximization, Stakeholder Theory, and the Corporate Objective Function. Business Ethics Quarterly 12 (2):235-256.
Jules L. Coleman (1984). Economics and the Law: A Critical Review of the Foundations of the Economic Approach to Law. Ethics 94 (4):649-679.
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