The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the social contracttheory. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. Thestakeholder theory, in contrast, is widely accepted, and the social contract theory appears to be gaining increasing adherents. In thisarticle, I undertake a critical review of the supporting arguments for each of the theories, and argue that the stockholder theory is neitheras outdated nor as (...) flawed as it is sometimes made to seem and that there are significant problems with the grounding of both thestakeholder and social contract theory. I conclude by suggesting that a truly adequate normative theory of business ethics must ultimately be grounded in individual consent. (shrink)

The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the social contracttheory. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. Thestakeholder theory, in contrast, is widely accepted, and the social contract theory appears to be gaining increasing adherents. In thisarticle, I undertake a critical review of the supporting arguments for each of the theories, and argue that the stockholder theory is neitheras outdated nor as (...) flawed as it is sometimes made to seem and that there are significant problems with the grounding of both thestakeholder and social contract theory. I conclude by suggesting that a truly adequate normative theory of business ethics must ultimately be grounded in individual consent. (shrink)

The nature of stakeholder theory and its fundamental normative prescriptions are the subject of much confusion and academic debate. This article attempts to provide an account of both the fundamental normative implications of stakeholder theory and the theory’s range of application that both stakeholder advocates and critics can agree upon. Using exclusively the language of leading stakeholder theorists, the article identifies the essential prescriptions of the theory and the type of organizations to which stakeholder theory applies in the hope of (...) facilitating effective discussion and evaluation of the normative dimension of stakeholder theory. (shrink)

In his 2007 Ethics article, “Responsibility Incorporated,” Philip Pettit argued that corporations qualify as morally responsible agents because they possess autonomy, normative judgment, and the capacity for self-control. Although there is ongoing debate over whether corporations have these capacities, both proponents and opponents of corporate moral agency appear to agree that Pettit correctly identified the requirements for moral agency. In this article, I do not take issue with either the claim that autonomy, normative judgment, and self-control are the requirements for (...) moral agency or the claim that corporations possess them. I claim that if both of these claims are correct, then corporate moral agency entails that, in a liberal democracy, corporations should have the right to vote. I show that under the conception of democracy supported by most liberal political theorists, all parties subject to the law are entitled to the right to vote, and all parties that possess autonomy, normative judgment, and self-control are subject to the law. Therefore, if the proponents of corporate moral agency are correct, then corporations satisfy the requirements for the right to vote. I then consider potential objections to this argument. I show that the strongest objection to the corporate right to vote is undermined by Pettit’s own argument for corporate autonomy. I then show that objections derived from other arguments for limiting the rights of corporations are equally unavailing. I conclude with some observations about the implications of my argument for the question of corporate speech rights. (shrink)

The academic debate over the propriety of attributing moral responsibility to corporations is decades old and ongoing. The conventional approach to this debate is to identify the sufficient conditions for moral agency and then attempt to determine whether corporations possess them. This article recommends abandoning the conventional approach in favor of an examination of the practical consequences of corporate moral responsibility. The article’s thesis is that such an examination reveals that attributing moral responsibility to corporations is ethically acceptable only if (...) it does not authorize the punishment of corporations as collective entities, and further, that this renders the debate over corporate moral responsibility virtually pointless. (shrink)

Business ethics is usually taught either from a philosophical perspective that derives guiding normative principles from abstract theories of philosophical ethics or from an atheoretical perspective that has students analyze cases that present difficult ethical issues and propose solutions on a casuistic basis. This article proposes a third approach—the Principles Approach—that derives guiding normative principles teleologically from the nature of market activity itself. The articledemonstrates how the Principles Approach can meet the four main challenges facing those who teach ethics in (...) business schools—the challenges of definition, abstract, cultural relativism, and integration. (shrink)

Natural rights theorists such as John Locke and Robert Nozick provide arguments for limited government that are grounded on the individual's possession of natural rights to life, liberty, and property. Resting on natural rights, such arguments can be no more persuasive than the underlying arguments for the existence of such rights, which are notoriously weak. In this article, John Hasnas offers an alternative conception of natural rights, “empirical natural rights,” that are not beset by the objections typically (...) raised against traditional natural rights. Empirical natural rights are rights that evolve in the state of nature rather than those that individuals are antecedently endowed with in that state. Professor Hasnas argues that empirical natural rights are true natural rights, that is, pre-political rights with natural grounds that can be possessed in the state of nature, and that, when taken together, they form a close approximation of the Lockean rights to life, liberty, and property. He furthers argues that empirical natural rights are normatively well-grounded because respecting them is productive of social peace, which possesses instrumental moral value regardless of one's conception inherent value. Professor Hasnas thus offers his conception of rights as solved problems as an alternative and potentially more secure footing for the traditional natural rights arguments for limited government associated with Locke and Nozick. Footnotesa I wish to thank my fellow contributors to this volume, Ellen Frankel Paul, and Ann C. Tunstall of SciLucent, LLC, for their exceedingly helpful comments on an earlier draft of this essay, and Annette Hasnas for the keen insight she provided into how human beings behave in the state of nature. (shrink)

Business ethics is usually taught either from a philosophical perspective that derives guiding normative principles from abstract theories of philosophical ethics or from an atheoretical perspective that has students analyze cases that present difficult ethical issues and propose solutions on a casuistic basis. This article proposes a third approach—the Principles Approach—that derives guiding normative principles teleologically from the nature of market activity itself. The articledemonstrates how the Principles Approach can meet the four main challenges facing those who teach ethics in (...) business schools—the challenges of definition, abstract, cultural relativism, and integration. (shrink)

ABSTRACT:Legal scholars and business ethicists are interested in many of the same core issues regarding human and firm behavior. The vast amount of legal research being generated by nearly 10,000 law school and business law scholars will inevitably influence business ethics research. This paper describes some of the recent trends in legal scholarship and explores its implications for three significant aspects of business ethics research—methodology, theory, and policy.

The corporate scandals of the past few years have brought renewed attention to the problem of curtailing dishonest and fraudulent business practices, a problem on which strategic, ethical, and law enforcement interests should be aligned. Unfortunately, several features of federal criminal law and federal law enforcement policy have driven a wedge into this alignment, forcing managers to choose between their ethical obligations and their obligation to obey the law or aid law enforcement. In this article, I examine the nature and (...) implications of the growing divergence between managers’ ethical and legal obligations. After describing the traditional approach to business ethics analysis, I identify the features of federal criminal law and law enforcement policy that are responsible for the divergence and show how they are undermining the efficacy of the traditional approach. I illustrate this effect with the issue of workplace confidentiality. I then argue that the traditional approach must be reformed to give explicit recognition to the legal dimension of normative analysis, and demonstrate how such a reformed approach would function by applying it to three illustrative issues—organizational justice, privacy, and ethical auditing—and supplying a case study—KPMG’s allegedly abusive tax shelters. (shrink)

Much of the focus on business ethics literature is on complex questions of corporate social responsibility. Yet, the heart of business ethics consists in a set of fundamental moral principles that are inherent in the activity of doing business in a market. These principles transcend differences in nationality, culture, and religion and supply the building blocks on which the more complex analyses can be based. This set of principles, which constitute the core of business ethics, provides business people with a (...) code of conduct that is the analog of attorneys’ Canon of Ethics and physicians’ Code of Medical Ethics. (shrink)

The corporate scandals of the past few years have brought renewed attention to the problem of curtailing dishonest and fraudulent business practices, a problem on which strategic, ethical, and law enforcement interests should be aligned. Unfortunately, several features of federal criminal law and federal law enforcement policy have driven a wedge into this alignment, forcing managers to choose between their ethical obligations and their obligation to obey the law or aid law enforcement. In this article, I examine the nature and (...) implications of the growing divergence between managers’ ethical and legal obligations. After describing the traditional approach to business ethics analysis, I identify the features of federal criminal law and law enforcement policy that are responsible for the divergence and show how they are undermining the efficacy of the traditional approach. I illustrate this effect with the issue of workplace confidentiality. I then argue that the traditional approach must be reformed to give explicit recognition to the legal dimension of normative analysis, and demonstrate how such a reformed approach would function by applying it to three illustrative issues—organizational justice, privacy, and ethical auditing—and supplying a case study—KPMG’s allegedly abusive tax shelters. (shrink)

The over-exploitation of commonly-held resources is typically analyzed as an instance of market failure that calls for legislation to internalize the social costs that private activities impose on the environment. In this article, I argue that to the extent that this analysis ignores the regulatory effect of the common law, it is unsound. In The Tragedy of the Commons, Garret Hardin points out that there are two solutions to the tragedy: privatize the resource or restrict access to it. Environmental legislation (...) is a means restricting access to the commons. The evolutionary development of common law is a means of privatizing the commons. These represent alternative methods of environmental regulation. Proper public policy analysis requires a comparative assessment of the efficacy of these methods for resolving any particular environmental problem. In many, if not most cases, such an assessment will show common law regulation to be superior to environmental legislation. (shrink)

The corporate scandals of the past few years have brought renewed attention to the problem of curtailing dishonest and fraudulent business practices, a problem on which strategic, ethical, and law enforcement interests should be aligned. Unfortunately, several features of federal criminal law and federal law enforcement policy have driven a wedge into this alignment, forcing managers to choose between their ethical obligations and their obligation to obey the law or aid law enforcement. In this article, I examine the nature and (...) implications of the growing divergence between managers’ ethical and legal obligations. After describing the traditional approach to business ethics analysis, I identify the features of federal criminal law and law enforcement policy that are responsible for the divergence and show how they are undermining the efficacy of the traditional approach. I illustrate this effect with the issue of workplace confidentiality. I then argue that the traditional approach must be reformed to give explicit recognition to the legal dimension of normative analysis, and demonstrate how such a reformed approach would function by applying it to three illustrative issues—organizational justice, privacy, and ethical auditing—and supplying a case study—KPMG’s allegedly abusive tax shelters. (shrink)

This article challenges the traditional argument for the state that holds that because the market is unable to supply the rule-making, adjudicative, and enforcement services that are essential to life in society, the state must, and hence is morally justified. The author argues that the market's inability to supply these basic services proves only that the state must ensure that they are supplied, not that it must supply them itself. This implies that the traditional concept of the minimal state as (...) one that supplies only these basic services is flawed. The `remedial state' (one that regulates the private provision of these services) is actually the minimal state. Key Words: anarchy • libertarianism • minimal state • political obligation • protective agency • public goods. (shrink)

This essay argues that there can be a duty to obey the law when it is produced by the evolutionary forces at work in the customary and common law. Human beings' inherent epistemic limitations mean that they must rely on the trial and error learning built into the common law process to discover rules that facilitate peaceful social interaction. Hence, a duty to obey the law produced by the common law process can arise from individuals' natural duty to promote social (...) peace. This argument cannot be extended to ground political obligation. It does not give rise to a duty to obey the state. (shrink)

In his thoughtful Commentary on my article, “Should Corporations Have the Right to Vote? A Paradox in the Theory of Corporate Moral Agency,” Kenneth Silver incorrectly asserts that I endorse Robert Dahl’s Principle of Affected Interests and social contract theory. To the extent that Silver’s criticism of my argument is based on the claim that I appeal to either theory as the ground for my claim that corporate moral agency entails a corporate right to vote, it is misguided. I rely (...) only on the Rawlsian equal participation principle that invests those subject to the law with the right to vote. To the extent Silver’s criticism is directed to that assertion, it is on point. (shrink)

The fundamental requirement of Anglo-American criminal law is that crime must consist of the concurrence of a guilty mind—a mens rea—with a guilty act—an actus reus. And yet, the criminal law is shot through with discordant lumps of strict liability—crimes for which no mens rea is required. Ignoring the conventional normative objections to this aberration, I distinguish two different types of strict criminal liability: the type that arose at common law and the type associated with the public welfare offenses that (...) are the product of twentieth and twenty-first century legislation. Using famous cases as exemplars, I analyze the two types of strict liability, and then examine the purposes served and incentives created by subjecting individuals to strict liability. I conclude that common law strict liability is rational in that it advances the purposes of the criminal law, while the public welfare offenses are at best pointless and at worst counterproductive. I suggest that in this respect the common law contains more wisdom than the results of the legislative process. (shrink)

Advocates of the privatization of law often assume that unless law springs from some act of agreement, some express or implicit social contract by which individuals consent to be bound, it is nothing more than force. In this Article, I argue that this is a false dilemma. Although law is rarely grounded in consent, this does not imply that law necessarily gives some individuals command over others. Law can arise through a process of evolution. When this is the case, those (...) subject to law are indeed bound, but not by the will of any particular human beings. Although this depoliticized law is inherently coercive, it is not inherently a vehicle for domination. This Article argues that such a system of depoliticized law is consistent with the ideal of the rule of law, and, in fact, is free market law, when that phrase is properly understood. (shrink)

Here I synthesize certain ideas presented in two different articles that appeared in the same issue of Business Ethics Quarterly. One article (Hasnas) invokes the stockholder model as a valid normative theory of business ethics, the other article (Dunfee) invokes a marketplace of morality. Both articles imply that the accepted financial-economic view of the firm is a view that can accommodateethics. I offer empirical support for this view. I also identify the ethic of the stockholder model as a variant (...) on might-makes-right andconsider the social acceptance of this ethic as a postmodern phenomenon. (shrink)

This paper carries forward the conceptual clarification of normative theories of business ethics ably begun by Hasnas in the January 1998 issue of BEQ. This paper proposes a normatively neutral framework for discussing and assessing such normative theories. Every normative theory needs to address these seven issues: it needs to specify a moral principle that identifies (1) recommended values and (2) the grounds for accepting those values. It also must specify (3) a decision principle that business people who accept (...) the theory can use. It must determine (4) who the normative theory applies to and (5) whose interests need to be considered. It must also outline (6) in what contexts it applies, and (7) what legal and regulatory structures it assumes. Once clarified, this paper applies the framework to the normative versions of stockholder theory, stakeholder theory, and ISCT. It is concluded that ISCT is the most promising normative theory currently under discussion, but that there are some major issues that ISCT has not dealt with yet. (shrink)

This essay responds to Hasnas’s recent article “The Normative Theories of Business Ethics: A Guide for the Perplexed” in Business Ethics Quarterly. Hasnas claims that the stockholder theory is more plausible than commonly supposed and that the stakeholder theory is prone to significant difficulties. I argue that Hasnas’s reasons for favoring the stockholder over the stakeholder theory are not asstrong as he suggests. Following Hasnas, I examine both theories in light of two sets of normative considerations: (...) utilitarian anddeontological. First, I show that utilitarian considerations clearly favor the stakeholder theory. I then argue that though Hasnas rightly accents the basic deontological constraint at the core of the stockholder theory, he is wrong to think that acknowledging such a constraint necessarily counts against the stakeholder theory. Here, I develop Ross’s notion of prima facie obligations to show how a viable stakeholder theory might be developed within a deontological framework. (shrink)

Are theories ‘underdetermined by the evidence’ in any way that should worry the scientific realist? I argue that no convincing reason has been given for thinking so. A crucial distinction is drawn between data equivalence and empirical equivalence. Duhem showed that it is always possible to produce a data equivalent rival to any accepted scientific theory. But there is no reason to regard such a rival as equally well empirically supported and hence no threat to realism. Two theories are empirically (...) equivalent if they share all consequences expressed in purely observational vocabulary. This is a much stronger requirement than has hitherto been recognised— two such ‘rival’ theories must in fact agree on many claims that are clearly theoretical in nature. Given this, it is unclear how much of an impact on realism a demonstration that there is always an empirically equivalent ‘rival’ to any accepted theory would have—even if such a demonstration could be produced. Certainly in the case of the version of realism that I defend—structural realism—such a demonstration would have precisely no impact: two empirically equivalent theories are, according to structural realism, cognitively indistinguishable. (shrink)

In his preface Mr Wilson writes 'I feel that a great many adults … would do better to spend less time in simply accepting the concepts of others uncritically, and more time in learning how to analyse concepts in general'. Mr Wilson starts by describing the techniques of conceptual analysis. He then gives examples of them in action by composing answers to specific questions and by criticism of quoted passages of argument. Chapter 3 sums up the importance of this kind (...) of mental activity. Chapter 4 presents selections for the reader to analyse, followed by questions of university entrance/scholarship type. This is a book to be worked through, in a sense a text-book. (shrink)

How do we acquire thoughts and beliefs about particulars by looking at pictures? One kind of reply essentially compares depiction to perception, holding that picture-perception is a form of remote object-perception. Lopes’s theory that pictures refer by demonstrative identification, and Walton’s transparency theory for photographs, constitute such remote acquaintance theories of depiction. The main purpose of this paper is to defend an alternative conception of pictures, on which they are not suitable for acquainting us with particulars but for acquainting us (...) with certain kinds of properties. This conception is outlined in §4, where it is argued that pictures are useful devices for what Heal has called indexical predication. In §2 and §3, I explain why I believe that remote acquaintance theories are false, and why picture-perception cannot function as a form of extended or remote object-perception. The main reason is that the contents of picture-perceptions do not themselves provide the kind of numerical and contextual information required for singular thought. Picture-reference is instead secured by independent beliefs or linguistic communication about the causal history of pictures as objects. In other words, it is beliefs about the numerical identity of pictures as objects that anchors the reference of the representational contents of pictures. (shrink)

Setting the scene -- Sentience and the sentient mind -- Special senses and their interpretation Survival strategies -- Social strategies -- Animals of the waters -- Animals of the air -- Animals of the savannah and plains -- Animals of the forests -- Close neighbours -- Our duty of care.

In this philosophically sophisticated and historically significant work, John H. Zammito reconstructs Kant's composition of The Critique of Judgment and reveals that it underwent three major transformations before publication. He shows that Kant not only made his "cognitive" turn, expanding the project from a "Critique of Taste" to a Critique of Judgment but he also made an "ethical" turn. This "ethical" turn was provoked by controversies in German philosophical and religious culture, in particular the writings of Johann Herder and (...) the Sturm und Drang movement in art and science, as well as the related pantheism controversy. Such topicality made the Third Critique pivotal in creating a "Kantian" movement in the 1790s, leading directly to German Idealism and Romanticism. The austerity and grandeur of Kant's philosophical writings sometimes make it hard to recognize them as the products of a historical individual situated in the particular constellation of his time and society. Here Kant emerges as a concrete historical figure struggling to preserve the achievements of cosmopolitan Aufkl-rung against challenges in natural science, religion, and politics in the late 1780s. More specifically Zammito suggests that Kant's Third Critique was animated throughout by a fierce personal rivalry with Herder and by a strong commitment to traditional Christian ideas of God and human moral freedom. "A work of extraordinary erudition. Zammito's study is both comprehensive and novel, connecting Kant's work with the aesthetic and religious controversies of the late eighteenth century. He seems to have read everything. I know of no comparable historical study of Kant's Third Critique."-Arnulf Zweig, translator and editor of Kant's ;IPhilosophical Correspondence, 1759-1799;X "An intricate, subtle, and exciting explanation of how Kant's thinking developed and adjusted to new challenges over the decade from the first edition of the Critique of Pure Reason to the appearance of the Critique of Judgment. "--John W. Burbidge, Review of Metaphysics "There has been for a long time a serious gap in English commentary on Kant's Critique of Judgment Zammito's book finally fills it. All students and scholars of Kant will want to consult it."--Frederick Beiser, Times Literary Supplement. (shrink)

Obviously medicine should be evidence-based. The issues lie in the details: what exactly counts as evidence? Do certain kinds of evidence carry more weight than others? (And if so why?) And how exactly should medicine be based on evidence? When it comes to these details, the evidence-based medicine (EBM) movement has got itself into a mess – or so it will be argued. In order to start to resolve this mess, we need to go 'back to basics'; and that means (...) turning to the philosophy of science. The theory of evidence, or rather the logic of the interrelations between theory and evidence, has always been central to the philosophy of science – sometimes under the alias of the 'theory of confirmation'. When taken together with a little philosophical commonsense, this logic can help us move towards a position on evidence in medicine that is more sophisticated and defensible than anything that EBM has been able so far to supply. (shrink)

This book investigates the central role of reason in Islamic intellectual life. Despite widespread characterization of Islam as a system of belief based only on revelation, John Walbridge argues that rational methods, not fundamentalism, have characterized Islamic law, philosophy and education since the medieval period. His research demonstrates that this medieval Islamic rational tradition was opposed by both modernists and fundamentalists, resulting in a general collapse of traditional Islamic intellectual life and its replacement by more modern but far shallower (...) forms of thought. However, the resources of this Islamic scholarly tradition remain an integral part of the Islamic intellectual tradition and will prove vital to its revival. The future of Islam, Walbridge argues, will be marked by a return to rationalism"--Provided by publisher. (shrink)

Man controls and dominates the habitat of most animals, both domestic and wild and there is a need for a pragmatic, workable approach to the problem of reconciling animal welfare with economic forces and the needs of man. It is the author's contention that much of the current philosophical discussion of animal welfare is misdirected now that it is possible to measure to some extent what animals think and feel and how much they can appreciate their quality of life. The (...) book deals with farm animals, pets, wild animals and laboratory animals and dicusses their environmental requirements, fear and stress, their response to pain, injury, disease and death, behaviour and aggression, and the implications of biotechnology and genetic engineering. Finally, the book tries to reconcile reverence for life with the inescapability of killing and reviews the prospects of preserving and enhancing quality of life for animals through legislations, education, economic and moral incentives. (shrink)

John Turri gives an example that he thinks refutes what he takes to be “G. E. Moore's view” that omissive assertions such as “It is raining but I do not believe that it is raining” are “inherently ‘absurd'”. This is that of Ellie, an eliminativist who makes such assertions. Turri thinks that these are perfectly reasonable and not even absurd. Nor does she seem irrational if the sincerity of her assertion requires her to believe its content. A commissive counterpart (...) of Ellie is Di, a dialetheist who asserts or believes that The Russell set includes itself but I believe that it is not the case that the Russell set includes itself. Since any adequate explanation of Moore's paradox must handle commissive assertions and beliefs as well as omissive ones, it must deal with Di as well as engage Ellie. I give such an explanation. I argue that neither Ellie's assertion nor her belief is irrational yet both are absurd. Likewise neither Di's assertion nor her belief is irrational yet in contrast neither is absurd. I conclude that not all Moore-paradoxical assertions or beliefs are irrational and that the syntax of Moore's examples is not sufficient for the absurdity found in them. (shrink)