According to Palazzo and Scherer, the changing role of business corporations in society requires that we take new measures to integrate these organizations into society-wide processes of democratic governance. We argue that their model of integration has a fundamental problem. Instead of treating business corporations as agents that must be held accountable to the democratic reasoning of affected parties, it treats corporations as agents who can hold others accountable. In our terminology, it treats business corporations as “supervising authorities” rather than (...) “functionaries.” The result is that Palazzo and Scherer’s model does not actually address the democratic deficit that it is meant to solve. In order to fix the problem, we advocate removing business corporations from any policymaking role in political CSR and limiting participation to political NGOs and other groups that meet the standards we set out for a politically representative organization (PRO). (shrink)

ABSTRACT:There is considerable overlap between the interests of business ethicists and those of political philosophers. Questions about the moral justifiability of the capitalist system, the basis of property rights, and the problem of inequality in the distribution of income have been of central importance in both fields. However, political philosophers have developed, especially over the past four decades, a set of tools and concepts for addressing these questions that are in many ways quite distinctive. Most business ethicists, on the other (...) hand, consider their field to be primarily a domain of applied ethics, and so adopt methods and conceptual frameworks developed by moral philosophers. In this paper, we discuss some of the salient differences between these two approaches, and suggest some ways in which business ethicists could benefit from taking a more “political philosophy” approach to these questions. Throughout, we underline the importance of seeking greater compatibility among the principles used in normative theorizing about markets, regulations, corporate governance, and business practices. (shrink)

This is annotated bibliography of the field of business ethics. It identifies and summarizes useful journals, textbooks, anthologies, and articles.

This article provides an overview of the field of business ethics.

Bringing together Deleuze, Blanchot, and Foucault, this book provides a detailed and original exploration of the ideas that influenced Deleuze's thought leading up to and throughout his cinema volumes and, as a result, proposes a new definition of art. Examining Blanchot's suggestion that art and dream are "outside" of power, as imagination has neither reality nor truth, and Foucault's theory that power forms knowledge by valuing life, Eugene Brent Young relates these to both Deleuze's philosophy of time and his (...) work with Guattari on art. In doing so, he uses case studies from literature and popular film, including Kafka's Castle, Villeneuve's Arrival, and Kubrick's Eyes Wide Shut. Providing important new insights for those working in literary and cinematic studies, this book advances a new definition of art as that which reverses the realities and truths of power to express obscure ideas and values beyond both our exterior and interior worlds. (shrink)

John Rawls says that one of the requirements for stability is “[s]ociety as an employer of last resort” (PLP, lix). He explains: “[t]he lack of . . . the opportunity for meaningful work and occupation is destructive . . . of citizens’ self-respect” (PLP, lix). Rawls implies in these claims that the opportunity for meaningful work is a social basis of self-respect. This constitutes a significant shift in his account of self-respect, one that has been overlooked. I begin by clarifying (...) Rawls’s account of self-respect in A Theory of Justice, then consider some post-Theory developments in it. After exploring the nature of Rawls’s commitment to the opportunity for meaningful work, I ask why he comes to think it is a social basis of self-respect. I extract a partial answer from his writings, then speculate about his full reasoning. Finally, I consider whether Rawls is right that the opportunity for meaningful work is a social basis of self-respect. I give some reason to believe that he is. (shrink)

Environmentalists consider invasions by exotic species of plants and animals to be one of the most serious environmental problems we face today, as well as one of the leading causes of biodiversity loss. We argue that in order to develop and enact sensible policies, it is crucial to consider two philosophical questions: What exactly makes a species native or exotic, and What values are at stake? We focus on the first of these two questions, and offer some preliminary suggestions with (...) regard to the second. Through a series of case studies, we show that it is not always clear whether a species is native or exotic. We identify five possible criteria that could be used for distinguishing natives from exotics. Rather than identifying one of these criteria as the 'correct' one, we suggest that the concepts of 'native' and ' exotic ' function more like what some philosophers have called cluster concepts. That is, there are several characteristics that are typical of native species, and a corresponding set of characteristics that are typical of exotic species. None of these characteristics is either necessary or sufficient for identifying a species as either native or exotic. We then identify several of the values that are at stake in dealing with exotic species, and we suggest that policies need to avoid being overly simplistic. (shrink)

The seventeenth and eighteenth centuries are arguably the most important period in philosophy’s history, given that they set a new and broad foundation for subsequent philosophical thought. Over the last decade, however, discontent among instructors has grown with coursebooks’ unwavering focus on the era’s seven most well-known philosophers—all of them white and male—and on their exclusively metaphysical and epistemological concerns. While few dispute the centrality of these figures and the questions they raised, the modern era also included essential contributions from (...) women—like Margaret Cavendish, Elisabeth of Bohemia, Mary Wollstonecraft, and Émilie Du Châtelet—as well as important non-white thinkers, such as Anton Wilhelm Amo, Julien Raimond, and Ottobah Cugoano. At the same time, there has been increasing recognition that moral and political philosophy, philosophy of the natural world, and philosophy of race—also vibrant areas of the seventeenth and eighteenth centuries—need to be better integrated with the standard coverage of metaphysics and epistemology. -/- A New Modern Philosophy: The Inclusive Anthology of Primary Sources addresses—in one volume—these valid criticisms. Weaving together multiple voices and all of the era’s vibrant areas of debate, this volume sets a new agenda for studying modern philosophy. It includes a wide range of readings from 34 thinkers, integrating essential works from all of the canonical writers along with the previously neglected philosophers. Arranged chronologically, editors Eugene Marshall and Susanne Sreedhar provide an introduction for each author that sets the thinker in his or her time period as well as in the longer debates to which the thinker contributed. Study questions and suggestions for further reading conclude each chapter. At the end of the volume, in addition to a comprehensive subject index, the book includes 13 Syllabus Modules, which will help instructors use the book to easily set up different topically structured courses, such as "The Citizen and the State," "Mind and Matter," "Education," "Theories of Perception," or "Metaphysics of Causation." -/- And an eresource offers a wide range of supplemental online resources, including essay assignments, exams, quizzes, student handouts, reading questions, and scholarly articles on teaching the history of philosophy. (shrink)

ABSTRACT:In this address, I distinguish and explore three conceptions of wages. A wage is a reward, given in recognition of the performance of a valued task. It is also an incentive: a way to entice workers to take and keep jobs, and to motivate them to work hard. Finally, a wage is a price of labor, and like all prices, conveys valuable information about relative scarcity. I show that each conception of wages has its own normative logic, or appropriate justification, (...) and these logics can come apart. This explains some of the debate about wages and makes the project of justifying a wagesimpliciterdifficult. I identify which logic we should choose, since we must choose, and say what this means for how we should think about the justification of pay. (shrink)

Packed with examples, this book offers a clear and engaging overview of ethical issues in business. -/- It begins with a discussion of foundational issues, including the objectivity of ethics, the content of ethical theories, and the debate between capitalism and socialism, making it suitable for the beginning student. It then examines ethical issues in business in three broad areas. The first is the market. Issues explored are what can be sold (the limits of markets) and how it can be (...) sold (ethics in marketing). The second is work. Topics in this area are health and safety, meaningful work, compensation, hiring and firing, privacy, and whistleblowing. The third area is the firm in society. Here readers explore corporate social responsibility, corporate political activity, and the set of ethical challenges that attend international business. -/- Issues are introduced through real-world examples that underscore their importance and make them come alive. Arguments for opposing positions are given fair hearings and students are encouraged to develop and defend their own views. (shrink)

The view of business ethics that Christopher McMahon calls the “implicit morality of the market” and Joseph Heath calls the “market failures approach” has received a significant amount of recent attention. The idea of this view is that we can derive an ethics for market participants by thinking about the “point” of market activity, and asking what the world would have to be like for this point to be realized. While this view has been much-discussed, it is still not well-understood. (...) This paper seeks to remedy this problem. I begin by showing, against some recent commentators, that McMahon’s view and Heath’s view are fundamentally the same. Second, I clarify the sense of “efficiency” at work in the market failures approach. Finally, I argue that, in its current form, this view has little relevance to the real world of business. I conclude by sketching two ways of modifying it to fit our world. (shrink)

Desert plays a central role in most contemporary theories of retributive justice, but little or no role in most contemporary theories of distributive justice. This asymmetric treatment of desert is prima facie strange. I consider several popular arguments against the use of desert in distributive justice, and argue that none of them can be used to justify the asymmetry.

Online retailers are using advances in data collection and computing technologies to “personalize” prices, i.e., offer goods for sale to shoppers at their reservation prices, or the highest price they are willing to pay. In this paper, I offer a criticism of this practice. I begin by putting online personalized pricing in context. It is not something entirely new, but rather a kind of price discrimination, a familiar pricing practice. I then offer a fairness-based argument against it. When an online (...) retailer personalizes prices, it competes unfairly for the social surplus created by a transaction. I defend this argument against objections, and offer a simple remedy: online retailers should either disclose that they are personalizing prices, or stop doing so. (shrink)

ABSTRACT:Debates about the ethics of executive compensation are dominated by familiar themes. Many writers consider whether the amount of pay CEOs receive is too large—relative to firm performance, foreign CEO pay, or employee pay. Many others consider whether the process by which CEOs are paid is compromised by weak or self-serving boards of directors. This paper examines the issue from a new perspective. I focus on the dutiesexecutives themselveshave with respect totheir owncompensation. I argue that CEOs’ fiduciary duties place a (...) moral limit on how much compensation they can accept, and hence seek in negotiation, from their firms. Accepting excessive compensation leaves the beneficiaries of their duties (e.g., shareholders) worse off, and thus is inconsistent with observing those duties. (shrink)

Abstract:The central problems of political philosophy (e.g., legitimate authority, distributive justice) mirror the central problems of business ethics. The question naturally arises: should political theories be applied to problems in business ethics? If a version of egalitarianism is the correct theory of justice for states, for example, does it follow that it is the correct theory of justice for businesses? If states should be democratically governed by their citizens, should businesses be democratically managed by their employees? Most theorists who have (...) considered these questions, including John Rawls inPolitical Liberalism, and Robert Phillips and Joshua Margolis in a 1999 article, have said “no.” They claim that states and businesses are different kinds of entities, and hence require different theories of justice. I challenge this claim. While businesses differ from states, the difference is one of degree, not one of kind. Business ethics has much to learn from political philosophy. (shrink)

In early writings, stakeholder theorists supported giving all stakeholders formal, binding control over the corporation, in particular, over its board of directors. In recent writings, however, they claim that stakeholder theory does not require changing the current structure of corporate governance and further claim to be “agnostic” about the value of doing so. This article’s purpose is to highlight this shift and to argue that it is a mistake. It argues that, for instrumental reasons, stakeholder theorists should support giving all (...) stakeholders control over the corporation, in the form of control over its board. That is, stakeholder theorists should support stakeholder democracy over the status quo. A larger goal of this article is to steer the conversation about stakeholder theory toward questions of governance and control. Stakeholder theorists tend to sidestep these questions, but it is vital that they be addressed. (shrink)

Must CEOs Be Saints? Contra Moriarty on CEO Abstemiousness by Robert KolbIn this journal, Jeffrey Moriarty argued that CEOs must refuse to accept compensation above the minimum compensation that will induce them to accept and per­form their jobs. Acting otherwise, he maintains, violates the CEO’s fiduciary duty, even for a CEO new to the firm. I argue that Moriarty’s conclusion rests on a failure to adequately distinguish when a person acts as a fiduciary from when she acts (...) on her own account as a person. Further, Moriarty’s argument assumes that the CEO knows this minimum level of compensation. However, we learn the suitability of compensation only through the market process of wage negotiation, not through some process of introspection. I conclude that a CEO who abstains from interfering with the board of directors and its compensation com­mittee is morally free to negotiate for the highest wage available. (shrink)

Linguistics. Artificial intelligence. Related fields. Computation.

Health institutions recommend that young infants be exclusively breastfed on demand, and it is widely held that parents who can breastfeed have an obligation to do so. This has been challenged in recent philosophical work, especially by Fiona Woollard. Woollard’s work critically engages with two distinct views of parental obligation that might ground such an obligation—based on maximal benefit and avoidance of significant harm—to reject an obligation to breastfeed. While agreeing with Woollard’s substantive conclusion, this paper (drawing on philosophical discussion (...) of the ‘right to rear’) argues that there are several more moderate views of parental obligation which might also be thought to ground parental obligation. We first show that an obligation to breastfeed might result not from a general obligation to maximally benefit one’s child, but from what we call ‘choice-specific’ obligations to maximise benefit within particular activities. We then develop this idea through two views of parental obligation—the Dual Interest view, and the Best Custodian view—to ground an obligation to exclusively breastfeed on demand, before showing how both these more moderate views fail. Finally, we argue that not only is there no general obligation to breastfeed children, but that it is often morally right not to do so. Since much advice from health institutions on this issue implies that exclusive breastfeeding on demand is the best option for all families, our argument drives the feeding debate forward by showing that this advice often misrepresents parents’ moral obligations in potentially harmful ways. (shrink)

Drawing on recent scholarship and delving systematically into Iamblichean texts, these ten papers establish Iamblichus as the great innovator of Neoplatonic philosophy who broadened its appeal for future generations of philosophers.

Abstract:In 2003, CEOs of the 365 largest U.S. corporations were paid on average $8 million, 301 times as much as factory workers. This paper asks whether CEOs get paid too much. Appealing to widely recognized moral values, I distinguish three views of justice in wages: the agreement view, the desert view, and the utility view. I argue that, no matter which view is correct, CEOs get paid too much. I conclude by offering two ways CEO pay might be reduced.

This essay provides an overview of business ethics. I describe important issues, identify some of the normative considerations animating them, and offer a roadmap of references for those wishing to learn more. I focus on issues in normative business ethics, but discuss briefly the growing body of work in descriptive business ethics. I conclude with a comment on the changing nature of the field.

Berkeley is best known for his immaterialism and the texts that extol it—the Principles of Human Knowledge and Three Dialogues Between Hylas and Philonous. He made his case by treatise, then by dialogue, and this tendency towards stylistic experimentation did not end there; this paper explores an early speculative fiction project that pursued his theological and philosophical agendas. Berkeley used satire to challenge his “freethinking” philosophical opponents in “The Pineal Gland” story published in The Guardian in 1713. Echoing the grand (...) tours Berkeley undertook in subsequent years, Part 1 offers a “gland tour” of some literary motivations, influences and legacies of these essays. Berkeley pursues heroic themes from Homer and Alexander Pope, while lampooning the philosophies of both Descartes and the freethinkers. Armed with the device of a magic snuff that transports him to the pineal glands of his adversaries, Berkeley's protagonist uses it “to distinguish the real from the professed sentiments of all persons of eminence in court, city, town, and country”. (Guardian, p. 187) Part 1 examines ‘The Pineal Gland’ in the context of Berkeley's broader philosophical legacy and the text's significant engagement with the literature of Homer and Pope, concluding that “The Pineal Gland” is an important but overlooked source in the history of early speculative fiction. Part 2 continues this analysis by exploring Berkeley's relationship with an expansive London literary circle, interrogating a line of influence beginning with the writing of Margaret Cavendish. In doing so, Part 2 also examines Berkeley's complex attitudes towards women. (shrink)

In Part 1, we explored how Berkeley drew from Homeric literature and used literary techniques such as satire to challenge his “freethinking” philosophical opponents in “The Pineal Gland” story published in The Guardian in 1713. Echoing the grand tours Berkeley undertook in subsequent years, Part 1 and 2 both present a “gland tour” of some motivations, influences and legacies of Berkeley's text. In particular, Part 2, explores a line of literary influence beginning with Margaret Cavendish and extending through Gabriel Daniel, (...) Berkeley and Alexander Pope. In doing so, we present anticipations of features of Berkeley's story in the writings of Margaret Cavendish amid a discussion of Berkeley's complex attitudes towards women. The paper also argues that Berkeley's story represents an underappreciated yet significant milestone in the history of speculative fiction. (shrink)

"Using hundreds of examples from newsrooms large and small, author Ron F. Smith challenges readers to determine how they would face moral dilemmas on the job. Chapters evaluate the search for principles, accountability, truth and objectivity, errors and corrections, diversity, "faking" the news, reporters and their sources, privacy, the government watch, deception, compassion, the business of news, journalists and their communities, and financial concerns. New to this edition: a chapter on improving coverage of minorities, expanded discussion of broadcast journalism and (...) reporting on the Internet, and stories from recent front pages and TV news programs."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved. (shrink)

Justice requires giving people what they deserve. Or so many philosophers – and according to many of those philosophers, everyone else – thought for centuries. In the 1970’s and 1980’s, however, perhaps under the influence of Rawls’s (1971) desert-less theory, desert was largely cast out of discussions of distributive justice. Now it is making a comeback. In this chapter I consider recent research on the concept of desert, arguments for its requital, and connections between desert and other distributive ideals. I (...) suggest that desert-sensitive theories of distributive justice, though they face obstacles, have a promising future. (shrink)

George Berkeley is known as “The Good Bishop,” a name celebrating his faith, pastoral ministry and earnest commitment to his philosophical views. To mathematicians, he is known for his agitated performance in his 1734 critique of fluxions, The Analyst. That work and its petulant tone were occasioned by (i) his “philo-mathematical” opponents’ alleged admonitions on religious mysteries’ lack of logical respectability and (ii) what Berkeley saw as a related public appetite for reformist and deist religious movements. This paper questions Berkeley’s (...) saintly reputation by outlining the hostility and flippancy in his handling of Jacob Walton’s contributions to the debate. Berkeley’s interactions with Walton bear many of the hallmarks of contemporary “trolling” culture and this paper emphasises and explains these parallels. Finally, given Berkeley’s theological and political agenda in his mathematical interactions, I argue that we should not read his mathematical rhetoric as straightforwardly representing his philosophical views. (shrink)

Many firms keep pay secret. They do not make information about what their employees are paid available inside or outside of the firm, i.e. to other employees or to the public at large. Indeed, many firms discourage their employees from, or sanction them for, disclosing their pay. Against this, I argue that there are good moral reasons for firms to be transparent about pay. Pay transparency prevents injustice, promotes autonomy, and increases efficiency. After presenting the positive case for pay transparency, (...) I defend it against objections, including the most common reasons firms give for keeping pay secret. (shrink)

Desert plays an important role in most contemporary theories of retributive justice, but an unimportant role in most contemporary theories of distributive justice. Saul Smilansky has recently put forward a defense of this asymmetry. In this study, I argue that it fails. Then, drawing on an argument of Richard Arneson’s, I suggest an alternative consequentialist rationale for the asymmetry. But while this shows that desert cannot be expected to play the same role in distributive justice that it can play in (...) retributive justice, it does not fully vindicate the asymmetry, since desert can still play an important role in the former. (shrink)

Acute aerobic exercise has been shown to improve fine motor skills and alter activation of the motor cortex. The intensity of exercise may influence M1 activation, and further impact whole-body motor skill performance. The aims of the current study were to compare a whole-body motor skill via a piano task following moderate-intensity training and high-intensity interval training, and to determine if M1 activation is linked to any such changes in performance. Nine subjects, aged 18 ± 1 years completed a control, (...) MIT, and HIIT trial followed by administration of a piano performance task. M1 activation was evaluated by measuring oxyhemoglobin and hemoglobin difference changes during post-exercise piano performance using functional near-infrared spectroscopy. The results indicate that piano performance scores were higher after the MIT trial, but not HIIT trial, compared to the control trial. A negative relationship was detected between heart rate during HIIT and post-HIIT piano scores. M1 activation was significantly increased after the HIIT trial. M1 activation was also positively associated with piano performance when exercise trials and all trials were combined. We found that acute moderate-intensity exercise led to an improvement in complex motor skill performance while higher-intensity exercise increased M1 activation. These results demonstrate that moderate-intensity exercise can prime the nervous system for the acquisition of whole-body motor skills, suggesting that similar exercise protocols may be effective in improving the outcomes of other motor tasks performed during regular routines of daily life. In addition, it appears that improvements in motor task performance may be driven by M1 activation. Our findings provide new mechanistic insight into the complex relationship between exercise intensity, M1 activation, and whole-body motor skill performance. (shrink)

This book is a study of Blaise Pascal's defence of Christian belief in the Pensees. Michael Moriarty aims to expound--and in places to criticize--what he argues is a coherent and original apologetic strategy. Setting out the basic philosophical and theological presuppositions of Pascal's project, the present volume draws the distinction between convictions attained by reason and those inspired by God-given faith. It also presents Pascal's view of the contradictions within human nature, between the 'wretchedness' and the 'greatness'. His mind-body (...) dualism and his mechanistic conception of non-human animals are discussed. Pascal invokes the biblical story of the Fall and the doctrine of original sin as the only credible explanation of these contradictions. His analysis of human occupations as powered by the twin desire to escape from painful thoughts and to gratify one's vanity is subjected to critical examination, as is his conception of the self and self-love. Pascal argues that just as Christianity propounds the only explanation for the human condition, so it offers the only kind of happiness that would satisfy our deepest longings. He thus reasons that we have an interest in investigating its truth-claims as rooted in the Bible and in history. The closing chapters of this book discuss Pascal's view of Christian morality and the famous 'wager' argument for opting in favour of Christian belief. (shrink)

Should people who perform equal work receive equal pay? Most would say ‘yes’, at least insofar as this question is understood to be asking whether employers should be permitted to discriminate against employees on the basis of race or sex. But suppose the employees belong to all of the same traditionally protected groups. Is (what I call) nondiscriminatory unequal pay for equal work wrong? Drawing an analogy with price discrimination, I argue that it is not intrinsically wrong, but it can (...) be deceptive, in which case it is wrong. (shrink)

Many arguments have been advanced in favor of employee participation in firm decision-making. Two of the most influential are the "interest protection argument" and the "autonomy argument." I argue that the case for granting participation rights to some other stakeholders, such as suppliers and community members, is at least as strong, according to the reasons given in these arguments, as the case for granting them to certain employees. I then consider how proponents of these arguments might modify their arguments, or (...) views, in response to this conclusion. (shrink)

This paper offers a sympathetic critique of Christopher McMahon’s Authority and Democracy: A General Theory of Government and Management. Although I find fault with some of his arguments, my goal is not to show that these arguments are irreparable, but to highlight issues that deserve further consideration. After defining some terms, first, I raise an objection to McMahon’s rejection of the moral unity of management (MUM) thesis. Second, I draw attention to his “moralization” of the workplace, and examine the role (...) it plays in his arguments about the relative strengths of the different kinds of authority. Third, I raise questions about his reliance on an analogy between states and firms. I suggest that states and firms are in some ways more alike, but in other ways less alike, than he allows. (shrink)

Philosophical naturalists deny the existence of anything supernatural, such as God, souls, demons, ghosts, angels, witchcraft, miracles, etc. They believe that human beings are animals whose existence is entirely governed by the same laws which govern the rest of the natural world. However, some environmentalists value nature intrinsically and aesthetically, and in doing so conceive of nature as that which is distinguished from the products of human culture. Some philosophical naturalists have claimed that any attempt to distinguish nature from the (...) products of human culture in this way stems from a pre-Darwinian world view in which humans are conceived as being separate from and superior to the natural world. They suggest that this distinction involves an implicit denial of philosophical naturalism. Furthermore, J. Baird Callicott and others have argued that it contributes to environmental destruction by espousing human superiority over the natural world. To the contrary, the nature/culture distinction is not the cause of either of these offenses. It is consistent with philosophical naturalism, fundamental to our ordinary conception of nature, and useful in promoting environmental protection. (shrink)

ABSTRACTThis paper responds to two issues in interpreting George Berkeley’s Analyst. First, it explains why the text contains no discussion of religious mysteries or points of faith, despite the claims of the text's subtitle; I argue that the subtitle must be understood, and its success assessed, in conjunction with material external to the text. Second, it’s unclear how naturally the arguments of the Analyst sit with Berkeley’s broader views. He criticizes the methodology of calculus and conceptually problematic entities, and the (...) extent to which they require one to bend the rules of classical mathematics. Yet, elsewhere, Berkeley’s opinion of classical mathematics and its intelligibility is low, and he defends a pragmatic approach to word meaning that should not find fault with so functionally successful a theory. The ad hominem intention of the text makes it difficult to discern to what extent Berkeley is committed to the sincerity of these criticisms. This component of the text is rarely discussed, but I argue that when trying to decide what Berkeley’s true position is in the Analyst, we should treat its ad hominem component as its primary intention. (shrink)

According to an existing “environmental” narrative, the financial crisis of 2007-2009 was due in part to executive compensation packages in the financial services industry that incentivized excessive risk-taking. Also according to this narrative, those who have a duty to protect society – principally, government regulators, but also firms themselves – are open to blame for how executives were paid, and must take steps to change executive compensation. This narrative is important but incomplete. I offer a supplementary “agential” narrative. According to (...) this narrative, executives are open to blame for the financial crisis for taking socially excessive risks. Moreover, since executives can play a role in shaping their compensation, they have an obligation to ensure that it does not incentivize them to take such risks. (shrink)