David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
The financial turmoil of the past several years has caused many to question the integrity, stability, and very purpose of financial systems which, in today’s world, represent a unique blend of primarily capitalism but also aspects of socialism and collectivism as well. A key factor contributing to this sustained period of economic upheaval has been the uncertainty surrounding capital markets – the fuel that powers all modern economies. Capital markets have, in the minds of many, come to represent the embodiment of greed, unrestrained egoism, and exploitation of the vulnerable – conceptions at complete odds with the central values of social justice as set forth in both Christian and Jewish primary sources: caring for the poor, protecting the weak, and the promotion of justice. In this paper I argue that capital markets, rather than being a means for the powerful to exploit the weak, have in fact become a force for social good in the aggregate. Indeed capital markets are, in fact, a social contract and as such must be governed by a set of normative ethical principles – both self imposed, and imposed by government regulation. I explore the ethical difficulties that have led to the systemic problems and market failures that lead to not only this current financial crisis, but literally all financial crises over the past eight hundred years. Capital markets, left to their own devices and without both self and governmental oversight, quickly become hotbeds of manipulation and exploitation. In order for markets to function properly, principles of basic fairness must become normative. It is when capital markets become unfair and unjust, that they fail. Thus, these markets must be structured in such a way as to 1) promote Rawl’s “Justice as Fairness” principle and 2) align the interests of market participants to produce universally beneficial market efficiency and stability. Finally, I propose concrete ways in which the power of capital markets may be harnessed to promote the central moral values of Christian tradition and be used by people of faith to promote the ideals of social justice.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library||
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Appa Rao Korukonda & Chenchu Ramaiah T. Bathala (2004). Ethics, Equity, and Social Justice in the New Economic Order: Using Financial Information for Keeping Social Score. Journal of Business Ethics 54 (1):1-15.
Jennifer Bremer & Nabil Elias (2007). Corporate Governance in Developing Economies the Case of Egypt. International Journal of Business Governance and Ethics 3 (4):430-445.
Bertrand Venard & Mohamed Hanafi (2008). Organizational Isomorphism and Corruption in Financial Institutions: Empirical Research in Emerging Countries. [REVIEW] Journal of Business Ethics 81 (2):481 - 498.
Karl Reinhard Kolmsee (2000). Philosophy at the Core of Economic Markets. Philosophy in the Contemporary World 7 (4):75-78.
Xiaohe Lu (2012). Making Social Capital Produce for Society: On the US Financial Crisis and Capital Credit. [REVIEW] Asian Journal of Business Ethics 1 (1):15-34.
Nicholas J. C. Santos & Gene R. Laczniak (2009). "Just" Markets From the Perspective of Catholic Social Teaching. Journal of Business Ethics 89 (1):29 - 38.
Daniel M. Hausman (1989). Are Markets Morally Free Zones? Philosophy and Public Affairs 18 (4):317-333.
Paul Oslington (2012). God and the Market: Adam Smith's Invisible Hand. [REVIEW] Journal of Business Ethics 108 (4):429 - 438.
David Harvey (2010). The Enigma of Capital: And the Crises of Capitalism. Oxford University Press.
Clark Wolf (1996). Markets, Justice, and the Interests of Future Generations. Ethics and the Environment 1 (2):153 - 175.
James Stacey Taylor (2006). Why Markets in Proto-Deceptive Goods Should Be Restricted. Journal of Business Ethics 65 (4):325 - 335.
Tim Benijts (2010). A Framework for Comparing Socially Responsible Investment Markets: An Analysis of the Dutch and Belgian Retail Markets. Business Ethics 19 (1):50-63.
Jessica Flanigan (2013). Inequality and Markets in Bodily Services. Political Theory 41 (1):144-150.
William Kline (2010). Do No Harm: A Defense of Markets in Healthcare. [REVIEW] HEC Forum 22 (3):241-251.
Added to index2012-03-09
Total downloads32 ( #58,366 of 1,101,880 )
Recent downloads (6 months)1 ( #306,556 of 1,101,880 )
How can I increase my downloads?