"--Peter Brooks, Princeton University "This is an important book and a superb piece of writing, combining passionate enthusiasm with calm arguments and informative examples.

This article develops contractarian business ethics by applying social contract arguments to a specific question: What are the pre-legal (or moral) rights and responsibilities of corporations? The argument uses a hypothetical social contract to show the existence of for-profit corporations in democratic capitalist societies is consistent with Rawls’s fundamental principles of justice. Corporations ought to have recognised their rights to be autonomous, to pursue private purposes, and to engage in economic activities. Corporations have a responsibility to respect the freedom (...) and human rights of all people, and not to interfere with government programs that ensure people have the education and training they need to find and keep corporate employment and that provide a safety-net that prevents destitution. If corporations have any other rights and responsibilities, those rights and responsibilities need to be established by actual social contracts, probably in the form of legitimate democratic processes. (shrink)

According to the commonsense view of civic virtue, the places to exercise civic virtue are largely restricted to politics. In this article, I argue for a more expansive view of civic virtue, and argue that one can exercise civic virtue equally well through working for or running a for-profit business. I argue that this conclusion follows from four relatively uncontroversial premises: (1) the consensus definition of “civic virtue”, (2) the standard, most popular theory of virtuous activity, (3) a conception (...) of the common good widely shared by liberal political philosophers, and (4) the mainstream economic theory of for-profit business. (shrink)

(2010). For-Profit Clinical Trials in Developing Countries—Those Troublesome Patient Benefits. The American Journal of Bioethics: Vol. 10, No. 6, pp. 52-54.

This article argues the philosophical concerns and foundational challenges raised by a for-profit model of education. The for-profit model is governed by a business paradigm, without reference to the context in which it is found. The authors explore primary ethical questions and challenges presented by this model. As such, they present potential solutions to the growing problem in higher education as a corporate entity. The authors introduce a potential model for analysis of the issues and suggest an interventional (...) technique with concrete directions for change. Universities are on the threshold of a transformation which can no longer be isolated from wider society. This environment awakened the critical task of blending corporate success with educational integrity. (shrink)

For-profit degree granting institutions are a growing and under-researched market segment that represents an extreme level of business involvement in academe. Permitting such institutions to grant degrees is a concern because the profit motive gives an incentive to operators to misrepresent the quality and benefits of such degrees. This paper addresses the issue of how adequately government quality assurance processes are able to protect the public interest. The degree program approval processes in three countries are evaluated using the (...) UNESCO guidelines for cross-border quality provision in higher education as an internationally accepted standard of quality assurance. (shrink)

Wright, Ken Review of: Not for profit: Why democracy needs the humanities, by Martha C. Nussbaum, Princeton University Press, 2012, xv + 168 pp. $27.95.

The law and policy applicable to the not-for-profit sector is of growing importance around the world. In this book, legal experts address fundamental questions about not-for-profit law from a range of theoretical and comparative perspectives. The essays provide scholarly analysis of not-for-profit law, organised around four themes: Politics, in the broader sense of living as a community, and the narrower sense of political power; Charity, how it is defined and changes in its meaning over time; Taxation, including (...) the rationale for government support of the sector through the tax system; Regulation, which is of increasing significance as governments establish increasingly complex forms of regulation of not-for-profit activity. The fundamental aim of the book is to deepen our understanding of not-for-profit law and of the rationales and modes of government support for the not-for-profit sector. (shrink)

Lucas, Brian Review of: Not-for-profit law: Theoretical and comparative perspectives, by ed. Matthew Harding, Ann O'Connell and Miranda Stewart, pp. 396, ebook $125.40, hardback $175.00.

This article looks at social entrepreneurs that operate for-profit and internationally, offering that international for-profit social entrepreneurs (IFPSE) are of a unique type. Initially, this article utilizes the entrepreneurship, social entrepreneurship, and international entrepreneurship literatures to develop a definition of the IFPSE. Next, a proposed model of the IFPSE is built utilizing the dimensions of mindset, opportunity recognition, social networks, and outcomes. Case studies of three IFPSE are then used to examine the proposed model. In the final section, (...) findings from the case studies are used to examine the proposed model and more fully elucidate the dimensions of the IFPSE. (shrink)

Mobile health applications that promise the user to help her with some aspect of her health are very popular: for-profit apps such as MyFitnessPal, Fitbit, or Headspace have tens of millions of users each. For-profit health apps are designed and run as optimization systems. One would expect that these health apps aim to optimize the health of the user, but in reality they aim to optimize user engagement and, in effect, conversion. This is problematic, I argue, because digital (...) health environments that aim to optimize user engagement risk being manipulative. To develop this argument, I first provide a brief analysis of the underlying business models and the resulting designs of the digital environments provided by popular for-profit health apps. In a second step, I present a concept of manipulation that can help analyze digital environments such as health apps. In the last part of the article, I use my concept of manipulation to analyze the manipulative potential of for-profit health apps. Although for-profit health can certainly empower their users, the conditions for empowerment also largely overlap with the conditions for manipulation. As a result, we should be cautious when embracing the empowerment discourse surrounding health apps. An additional aim of this article is to contribute to the rapidly growing literature on digital choice architectures and the ethics of influencing behavior through such choice architectures. I take health apps to be a paradigmatic example of digital choice architectures that give rise to ethical questions, so my analysis of the manipulative potential of health apps can also inform the larger literature on digital choice architectures. (shrink)

The recent trend toward privately owned and operated prisons calls attention to a variety of issues involving human rights. The growing number of corporatized correctional institutions is especially notable in the United States, but it is also a global phenomenon in many countries. The reasons cited for privatizing prisons are usually economic; the opportunity to outsource prison services enables local political leaders to save tax revenue, and local communities are promised a chance to create new jobs and bring in a (...) new industry. This article will address the history of prisons and the recent trend toward privatizing prisons and the perception of prisons as a for-profit enterprise. This new economic order brings with it a set of human rights concerns, including the relationship of for-profit prisons to increased numbers of incarcerated persons and increased sentences, racism and classism. The contractual relationship between political leaders and prison corporations will be addressed, noting that conditions of liability frequently mean that prison administrations lack motivation to safeguard the human rights of prisoners. The human rights issues often extend outside of the private prison itself, having a negative effect on the local community. (shrink)

After reviewing current proposals for standardized testing in K-12 education and for imposition of free-market economic and business models on higher education, I argue that both types of proposals rest on flawed pedagogical assumptions and tend to undermine educational practices that promote the development of global citizens. I suggest that John Dewey was aware of the type of challenges now faced by educators and that he provided tools for blunting the force of these proposals and moving educational practice toward more (...) desirable ends. (shrink)

Princeton, NJ: Princeton University Press, 2010. Pp. 178.Hb. £15.95.

Performance measurement has far-reaching implications for not-for-profit organizations because it serves to legitimize, attract resources, and preserve expectations of stakeholders. However, the existing theory and practice of not-for-profit performance measurement have fallen short, due in part, to an overuse of profit-oriented philosophies. Therefore, we examine not-for-profit performance measurement by utilizing Marques’ “five spiritual practices of Buddhism.” Marques’ spiritual practices—a pro-scientific philosophy, greater personal responsibility, healthy detachment, collaboration, and embracing a wholesome view—are the foundation of our research (...) design. Responses from senior not-for-profit practitioners support the linkages between spiritual practices and not-for-profit performance measurement. We identify three essential performance measurement principles and elaborate on their capacity to generate awareness, higher meaning, and connectedness within not-for-profits. (shrink)

Why do some organizations suffer more than others in the wake of an industry scandal? Although ex-ante greater opportunistic behavior of organizations is one factor, we argue that ex-post greater targeting of organizations is another important factor. Using the context of microfinance organizations (MFOs), we examine why the financial sustainability of for-profit and non-profit organizations may be heterogeneously affected following a scandal. Leveraging the 2010 Indian microfinance scandal as our research setting and analyzing longitudinal data, we find a (...) substantial decline in the financial sustainability of Indian MFOs relative to their counterparts within the rest of South Asia. Compared to Indian non-profit MFOs, Indian for-profit MFOs suffered substantially more. Intriguingly, these results hold not only in the full sample, but also in the matched sample of comparable for-profit and non-profit MFOs. Further analysis reveals that the adverse impact on for-profit MFOs was much bigger in the scandal’s epicenter. Our findings suggest that some organizations may suffer more than others not only due to their engagement in actual malfeasance but also due to their greater targeting by the social control agents. We discuss the implications of this study for social enterprise managers and policymakers. (shrink)

Nussbaum's analysis of our predicament turns on a contrast between two rival models of education. The "old model," concerned with education for profit and economic growth, places heavy emphasis on the skills associated with science and technology. From this perspective, the study of literature, history, philosophy, languages and the arts make no real or significant contribution to our basic economic needs and concerns - they may even be obstacles. In contrast, Nussbaum defends "the human development mode," which regards the (...) humanities as having a crucial role in our commitment to a democratic community and social equality. This alternative approach is perhaps better described as the "ethical model," since in respect of both its method and content it aims to produce humane, sympathetic and creative "global citizens." -/- ... This book will certainly add weight to Nussbaum's considerable reputation and influence as a major public intellectual. Her core diagnosis is both accurate and compelling. There are, nevertheless, features of this book that may be questioned.... Some may argue, for example, that Nussbaum's defence of the humanities leans too heavily on the political value we attach to these studies and, more particularly, on the specific ideological goals that they are supposed to secure. The general objection here is that it is a mistake simply to assume that the humanities' primary role is to serve as a vehicle for those progressive social forces concerned with issues of race, gender and sexuality. Although the contemporary humanities program has veered heavily in this particular direction, it is a matter of intense debate, within the humanities, to what extent this has been healthy and constructive. Clearly there are more traditional or conservative forces who take the view that this way of politicizing the humanities, of imposing a particular ideological agenda on its content and concerns, has not only narrowed and impoverished our understanding of humanities education, it has left the humanities vulnerable to hostile and reactionary forces only too willing to scrap them altogether.... -/- . (shrink)

For-profit universities are degree-granting institutions that are owned and operated by business corporations. This paper addresses two related public policy questions about for-profit universities. First, should governments and appropriate regulatory bodies permit for-profit universities to grant degrees in their jurisdiction? Second, should higher education policy be developed to create for-profit universities? In this paper, a property rights argument is presented to demonstrate that a corporation should have the right to offer degrees if certain regulatory tests can (...) be met. In limited circumstances, governments might consider establishing for-profit universities, but only if they promote public goods. (shrink)

Assume that a not-for-profit receives a sizable donation and names a building after the donor. What should the not-for-profit do, when, at a later date, the donorbecomes tainted because of a scandal? This paper outlines a typology of donors and donations, and using stakeholder theory and resource dependency identifies three external factors (cognitive dissonance, multiple stakeholders, and recency) and three organizational factors (economic need, funding guidelines, and commitment) that would entice a NFP to adopt any one of three (...) strategies: return the money and delete the donor’s name; keep the money but delete the donor’s name; or keep the money and the donor’s name on the building. (shrink)

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders’ interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders' interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

Recent judicial rulings and changes in federal and state legislation have given for-profit corporations a growing list of rights and constitutional protections, including the right to practice religion free from many types of federal or state restriction. In this paper, we highlight the implications of these developments using Rawls’ Theory of Justice to explore the consequences of for-profit corporate religious freedom for consumers and employees. We identify preliminary principles to spark a discussion as to how expanding religious freedom (...) for businesses and fair access to goods and services can coexist in the for-profit marketplace. (shrink)

The emergence of Covid‐19 in the United States has revealed a critical weakness in the health care system in the United States. The majority of people in the nation receive health care via employment‐based health insurance from providers in a competitive market. However, neither employment‐based health care nor a competitive health care market can adequately provide treatment during a global pandemic. Employment‐based health care will fail to provide care for a large number of people in any destabilizing economic event, including (...) a pandemic. Competitive for‐profit health care systems distribute limited goods based on markets rather than health care needs. If a global pandemic results in unusually high demand for specific medical supplies, then these will be distributed suboptimally. The combined risk of suboptimal distribution of needed goods and a significant drop in health care access in a global pandemic indicates that the U.S. health care system has serious vulnerabilities that need to be addressed. (shrink)

Princeton, NJ: Princeton University Press, 2010. Pp. 178.Hb. £15.95.

Most hospitals are considered charities under common law because they were established for the benefit of the public. The law granted them benefits, but also imposed duties. Under the cy-pres doctrine, if a charitable purpose becomes obsolete or incapable of being carried out, the court could modify those purposes to meet current needs of the organization and the community. Modern laws attempt to find a purpose as near as possible to original purposes set up by donors. In the case of (...) hospital conversion, some regulators say assets must be used to support hospital health care, while others say they can be used in the broad sense of health care. That has been a continuing conflict between communities and regulators.Since 1996, 30 conversion statutes have been enacted, covering hospitals, HMOs, and insurers. (shrink)

Most hospitals are considered charities under common law because they were established for the benefit of the public. The law granted them benefits, but also imposed duties. Under the cy-pres doctrine, if a charitable purpose becomes obsolete or incapable of being carried out, the court could modify those purposes to meet current needs of the organization and the community. Modern laws attempt to find a purpose as near as possible to original purposes set up by donors. In the case of (...) hospital conversion, some regulators say assets must be used to support hospital health care, while others say they can be used in the broad sense of health care. That has been a continuing conflict between communities and regulators.Since 1996, 30 conversion statutes have been enacted, covering hospitals, HMOs, and insurers. (shrink)