Business ethics

From Wikipedia, the free encyclopedia

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines
ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of
business conduct and is relevant to the conduct of individuals and entire organizations.
[1]

Business ethics has both normative and descriptive dimensions. As a corporate practice and a career
specialization, the field is primarily normative. Academics attempting to understand business behavior employ
descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-
maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during
the 1980s and 1990s, both within major corporations and within academia. For example, today most major
corporations promote their commitment to non-economic values under headings such as ethics codes and
social responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for
merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance
to raise prices."
[2]
Governments use laws and regulations to point business behavior in what they perceive to be
beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental
control.
[3]
The emergence of large corporations with limited relationships and sensitivity to the communities in
which they operate accelerated the development of formal ethics regimes.
[4]

Contents
[hide]
1 History
2 Overview
3 Functional business areas
o 3.1 Finance
o 3.2 Other issues
o 3.3 Human resource management
o 3.4 Sales and marketing
o 3.5 Production
o 3.6 Property
o 3.7 Intellectual property
4 International issues
5 Economic systems
6 Law and regulation
7 Implementation
o 7.1 Corporate policies
o 7.2 Ethics officers
8 Academic discipline
9 Religious views
10 Related disciplines
11 See also
12 References
13 Further reading
14 External links
History[edit]
Business ethical norms reflect the norms of each historical period. As time passes norms evolve, causing
accepted behaviors to become objectionable. Business ethics and the resulting behavior evolved as well.
Business was involved in slavery,
[5][6][7]
colonialism,
[8][9]
and the cold war.
[10][11]

The term 'business ethics' came into common use in the United States in the early 1970s. By the mid-1980s at
least 500 courses in business ethics reached 40,000 students, using some twenty textbooks and at least ten
casebooks along supported by professional societies, centers and journals of business ethics. The Society for
Business Ethics was started in 1980. European business schools adopted business ethics after 1987
commencing with the European Business Ethics Network (EBEN).
[12][13][14][15]
In 1982 the first single-authored
books in the field appeared.
[16][17]

Firms started highlighting their ethical stature in the late 1980s and early 1990s, possibly trying to distance
themselves from the business scandals of the day, such as the savings and loan crisis. The idea of business
ethics caught the attention of academics, media and business firms by the end of the Cold
War.
[13][18][19]
However, legitimate criticism of business practices was attacked for infringing the "freedom"
of entrepreneurs and critics were accused of supporting communists.
[20][21]
This scuttled the discourse of
business ethics both in media and academia.
[22]

Overview[edit]
Business ethics reflects the philosophy of business, one of whose aims is to determine the fundamental
purposes of a company. If a company's purpose is to maximize shareholder returns, then sacrificing profits to
other concerns is a violation of its fiduciary responsibility. Corporate entities are legally considered as persons
in USA and in most nations. The 'corporate persons' are legally entitled to the rights and liabilities due to
citizens as persons.
Economist Milton Friedman writes that corporate executives' "responsibility... generally will be to make as much
money as possible while conforming to their basic rules of the society, both those embodied in law and those
embodied in ethical custom".
[23]
Friedman also said, "the only entities who can have responsibilities are
individuals ... A business cannot have responsibilities. So the question is, do corporate executives, provided
they stay within the law, have responsibilities in their business activities other than to make as much money for
their stockholders as possible? And my answer to that is, no, they do not."
[23][24][25]
A multi-country 2011 survey
found support for this view among the "informed public" ranging from 30 to 80%.
[26]
Ronald Duskaviews
Friedman's argument as consequentialist rather than pragmatic, implying that unrestrained corporate freedom
would benefit the most in long term.
[27][28]
Similarly author business consultant Peter Drucker observed, "There
is neither a separate ethics of business nor is one needed", implying that standards of personal ethics cover all
business situations.
[29]
However, Peter Drucker in another instance observed that the ultimate responsibility of
company directors is not to harmprimum non nocere.
[30]
Another view of business is that it must
exhibit corporate social responsibility (CSR): an umbrella term indicating that an ethical business must act as a
responsible citizen of the communities in which it operates even at the cost of profits or other
goals.
[31][32][33][34][35]
In the US and most other nations corporate entities are legally treated as persons in some
respects. For example, they can hold title to property, sue and be sued and are subject to taxation, although
their free speech rights are limited. This can be interpreted to imply that they have independent ethical
responsibilities.
[citation needed]
Duska argues that stakeholders have the right to expect a business to be ethical; if
business has no ethical obligations, other institutions could make the same claim which would be
counterproductive to the corporation.
[27]

Ethical issues include the rights and duties between a company and its employees, suppliers, customers and
neighbors, its fiduciary responsibility to its shareholders. Issues concerning relations between different
companies include hostile take-overs and industrial espionage. Related issues include corporate
governance;corporate social entrepreneurship; political contributions; legal issues such as the ethical debate
over introducing a crime of corporate manslaughter; and the marketing of corporations' ethics policies.
[citation
needed]
According to IBE/ Ipsos MORIresearch published in late 2012, the three major areas of public concern
regarding business ethics in Britain are executive pay, corporate tax avoidance and bribery and corruption.
[36]

Functional business areas[edit]
Finance[edit]
Fundamentally, finance is a social science discipline.
[37]
The discipline borders behavioral economics,
sociology,
[38]
economics, accounting and management. It concerns technical issues such as the mix of debt
and equity, dividend policy, the evaluation of alternative investment projects, options, futures, swaps, and
other derivatives, portfolio diversification and many others. It is often mistaken
[who?]
to be a discipline free from
ethical burdens.
[37]
The 2008 financial crisis caused critics to challenge the ethics of the executives in charge of
U.S. and European financial institutions and financial regulatory bodies.
[39]
Finance ethics is overlooked for
another reasonissues in finance are often addressed as matters of law rather than ethics.
[40]

Finance paradigm[edit]
Aristotle said, "the end and purpose of the polis is the good life".
[41]
Adam Smith characterized the good life in
terms of material goods and intellectual and moral excellences of character.
[42]
Smith in his The Wealth of
Nations commented, "All for ourselves, and nothing for other people, seems, in every age of the world, to have
been the vile maxim of the masters of mankind."
[43]


Wikiquote has a collection
of quotations related
to: Adam Smith
However, a section of economists influenced by the ideology of neoliberalism, interpreted the objective of
economics to be maximization of economic growth through accelerated consumption and production of goods
and services.
[44]
Neoliberal ideology promoted finance from its position as a component of economics to its
core.
[citation needed]
Proponents of the ideology hold that unrestricted financial flows, if redeemed from the shackles
of "financial repressions",
[45]
best help impoverished nations to grow.
[citation needed]
The theory holds that open
financial systems accelerate economic growth by encouraging foreign capital inows, thereby enabling higher
levels of savings, investment, employment, productivity and "welfare",
[46][47][48][49]
along with containing
corruption.
[50]
Neoliberals recommended that governments open their financial systems to the global market with
minimal regulation over capital flows.
[51][52][53][54][55]
The recommendations however, met with criticisms from
various schools of ethical philosophy. Some pragmatic ethicists, found these claims to unfalsifiable and a priori,
although neither of these makes the recommendations false or unethical per se.
[56][57][58]
Raising economic
growth to the highest value necessarily means that welfare is subordinate, although advocates dispute this
saying that economic growth provides more welfare than known alternatives.
[59]
Since history shows that
neither regulated nor unregulated firms always behave ethically, neither regime offers an
ethical panacea.
[60][61][62]

Neoliberal recommendations to developing countries to unconditionally open up their economies to
transnational finance corporations was fiercely contested by some ethicists.
[63][64][65][66][67]
The claim that
deregulation and the opening up of economies would reduce corruption was also contested.
[68][69][70]

Dobson observes, "a rational agent is simply one who pursues personal material advantage ad infinitum. In
essence, to be rational in finance is to be individualistic, materialistic, and competitive. Business is a game
played by individuals, as with all games the object is to win, and winning is measured in terms solely of material
wealth. Within the discipline this rationality concept is never questioned, and has indeed become the theory-of-
the-firm's sine qua non".
[71][72]
Financial ethics is in this view a mathematical function of shareholder wealth.
Such simplifying assumptions were once necessary for the construction of mathematically robust
models.
[73]
However signalling theory and agency theory extended the paradigm to greater realism.
[74]

Other issues[edit]
Fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax
payments, internal audit, external audit and executive compensation also fall under the umbrella of finance and
accounting.
[40][75]
Particular corporate ethical/legal abuses include: creative accounting, earnings management,
misleading financial analysis, insider trading,securities fraud, bribery/kickbacks and facilitation payments.
Outside of corporations, bucket shops and forex scams are criminal manipulations of financial markets. Cases
include accounting scandals, Enron, WorldCom and Satyam.
[citation needed]

Human resource management[edit]
Human resource management occupies the sphere of activity of recruitment selection, orientation, performance
appraisal, training and development, industrial relations and health and safetyissues.
[76]
Business Ethicists
differ in their orientation towards labour ethics. Some assess human resource policies according to whether
they support an egalitarian workplace and the dignity of labor.
[77][78][79]

Issues including employment itself, privacy, compensation in accord with comparable worth, collective
bargaining (and/or its opposite) can be seen either as inalienable rights
[80][81]
or as
negotiable.
[82][83][84][85][86]
Discrimination by age (preferring the young or the old), gender/sexual
harassment, race, religion, disability, weight and attractiveness. A common approach to remedying
discrimination is affirmative action.
Potential employees have ethical obligations to employers, involving intellectual property protection
and whistle-blowing.
Employers must consider workplace safety, which may involve modifying the workplace, or providing
appropriate training or hazard disclosure.
Larger economic issues such as immigration, trade policy, globalization and trade unionism affect workplaces
and have an ethical dimension, but are often beyond the purview of individual companies.
[80][87][88]

Trade unions[edit]
Unions for example, may push employers to establish due process for workers, but may also cost jobs by
demanding unsustainable compensation and work rules.
[89][90][91][92][93][94][95][96][97][98]

Unionized workplaces may confront union busting and strike breaking and face the ethical implications of work
rules that advantage some workers over others.
[citation needed]

Management strategy[edit]
Among the many people management strategies that companies employ are a "soft" approach that regards
employees as a source of creative energy and participants in workplace decision making, a "hard" version
explicitly focused on control
[99]
and Theory Z that emphasizes philosophy, culture and consensus.
[100]
None
ensure ethical behavior.
[101]
Some studies claim that sustainable success requires a humanely treated and
satisfied workforce.
[102][103][104]

Sales and marketing[edit]
Main article: Marketing ethics
Marketing of age only as late as 1990s.
[105]
Marketing ethics was approached from ethical perspectives of virtue
or virtue ethics, deontology, consequentialism, pragmatism and relativism.
[106][107]

Ethics in marketing deals with the principles, values and/or ideals by which marketers (and marketing
institutions) ought to act.
[108]
Marketing ethics is also contested terrain, beyond the previously described issue
of potential conflicts between profitability and other concerns. Ethical marketing issues include marketing
redundant or dangerous products/services
[109][110][111]
transparency about environmental risks, transparency
about product ingredients such as genetically modified organisms
[112][113][114][115]
possible health risks, financial
risks, security risks, etc.,
[116]
respect for consumer privacy and autonomy,
[117]
advertising truthfulness and
fairness in pricing & distribution.
[118]

According to Borgerson, and Schroeder (2008), marketing can influence individuals' perceptions of and
interactions with other people, implying an ethical responsibility to avoid distorting those perceptions and
interactions.
[119]

Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions
including price discrimination and price skimming. Certain promotional activities have drawn fire,
including greenwashing, bait and switch, shilling, viral marketing, spam (electronic), pyramid
schemes and multi-level marketing. Advertising has raised objections about attack ads,subliminal
messages, sex in advertising and marketing in schools.
Production[edit]
This area of business ethics usually deals with the duties of a company to ensure that products and production
processes do not needlessly cause harm. Since few goods and services can be produced and consumed with
zero risk, determining the ethical course can be problematic. In some case consumers demand products that
harm them, such as tobacco products. Production may have environmental impacts, including pollution, habitat
destruction and urban sprawl. The downstream effects of technologies nuclear power, genetically modified
food and mobile phonesmay not be well understood. While the precautionary principle may prohibit introducing
new technology whose consequences are not fully understood, that principle would have prohibited most new
technology introduced since the industrial revolution. Product testing protocols have been attacked for violating
the rights of both humans and animals.
[citation needed]

Property[edit]
Main article: Private property, and Property rights
The etymological root of property is the Latin 'proprius'
[120]
which refers to 'nature', 'quality', 'one's own', 'special
characteristic', 'proper', 'intrinsic', 'inherent', 'regular', 'normal', 'genuine', 'thorough, complete, perfect' etc. The
word property is value loaded and associated with the personal qualities of propriety and respectability, also
implies questions relating to ownership. A 'proper' person owns and is true to herself or himself, and is thus
genuine, perfect and pure.
[121]

Modern history of property rights[edit]
Modern discourse on property emerged by the turn of 17th century within theological discussions of that time.
For instance, John Locke justified property rights saying that God had made "the earth, and all inferior
creatures, [in] common to all men".
[122][123][124][125]

In 1802 Utilitarian Jeremy Bentham stated, "property and law are born together and die together".
[126][127]

One argument for property ownership is that it enhances individual liberty by extending the line of non-
interference by the state or others around the person.
[128]
Seen from this perspective, property right is absolute
and property has a special and distinctive character that precedes its legal protection. Blackstone
conceptualized property as the "sole and despotic dominion which one man claims and exercises over the
external things of the world, in total exclusion of the right of any other individual in the universe".
[129]

Slaves as property[edit]
During the seventeenth and eighteenth centuries, slavery spread to European colonies including America,
where colonial legislatures defined the legal status of slaves as a form of property.
[130]
During this time settlers
began the centuries-long process of dispossessing the natives of America of millions of acres of
land.
[131]
Ironically, the natives lost about 200,000 square miles (520,000 km
2
) of land in the Louisiana
Territory under the leadership of Thomas Jefferson, who championed property rights.
[132][133][134]

Combined with theological justification, property was taken to be essentially natural ordained by
God.
[135]
Property, which later gained meaning as ownership and appeared natural to Locke, Jefferson and to
many of the 18th and 19th century intellectuals
[136]
as land, labour or idea
[137]
and property right over slaves had
the same theological and essentializedjustification
[138][139][140][141][142][143]
It was even held that the property in
slaves was a sacred right.
[144][145]
Wiecek noted, "slavery was more clearly and explicitly established under the
Constitution as it had been under the Articles".
[146]
Accordingly, US Supreme Court Chief Justice Roger B.
Taney in his 1857 judgment stated, "The right of property in a slave is distinctly and expressly affirmed in the
Constitution".
Natural right vs social construct[edit]
Neoliberals hold that private property rights are a non-negotiable natural right.
[147][148]
Davies counters with
"property is no different from other legal categories in that it is simply a consequence of the significance
attached by law to the relationships between legal persons."
[149][150]
Singer claims, "Property is a form of power,
and the distribution of power is a political problem of the highest order".
[151][152]
Rose finds, "'Property' is only an
effect, a construction, of relationships between people, meaning that its objective character is contestable.
Persons and things, are 'constituted' or 'fabricated' by legal and other normative techniques.".
[153][154]
Singer
observes, "A private property regime is not, after all, a Hobbesian state of nature; it requires a working legal
system that can define, allocate, and enforce property rights."
[155]
Davis claims that common law theory
generally favors the view that "property is not essentially a 'right to a thing', but rather a separable bundle of
rights subsisting between persons which may vary according to the context and the object which is at
stake".
[149]

In common parlance property rights involve a 'bundle of rights'
[156]
including occupancy, use and enjoyment,
and the right to sell, devise, give, or lease all or part of these rights.
[157][158][159][160]
Custodians of property have
obligations as well as rights.
[161][162]
Michelman writes, "A property regime thus depends on a great deal of
cooperation, trustworthiness, and self-restraint among the people who enjoy it."
[163][164]

Menon claims that the autonomous individual, responsible for his/her own existence is a cultural construct
moulded by Western culture rather than the truth about the human condition.
[165]
Penner views property as an
"illusion"a "normative phantasm" without substance.
[166][167]

In the neoliberal literature, property is part of the private side of a public/private dichotomy and acts a
counterweight to state power. Davies counters that "any space may be subject to plural meanings or
appropriations which do not necessarily come into conflict".
[168]

Private property has never been a universal doctrine, although since the end of the Cold War is it has become
nearly so. Some societies, e.g., Native American bands, held land, if not all property, in common. When groups
came into conflict, the victor often appropriated the loser's property.
[169][170]
The rights paradigm tended to
stabilize the distribution of property holdings on the presumption that title had been lawfully acquired.
[171]

Property does not exist in isolation, and so property rights too.
[172]
Bryan claimed that property rights describe
relations among people and not just relations between people and things
[173][174][175][176][177][178]
Singer holds that
the idea that owners have no legal obligations to others wrongly supposes that property rights hardly ever
conflict with other legally protected interests.
[179]
Singer continues implying that legal realists "did not take the
character and structure of social relations as an important independent factor in choosing the rules that govern
market life". Ethics of property rights begins with recognizing the vacuous nature of the notion of property.
[180]

Intellectual property[edit]
Main articles: Intellectual property and Intellectual property rights
Intellectual property (IP) encompasses expressions of ideas, thoughts, codes and information. "Intellectual
property rights" (IPR) treat IP as a kind of real property, subject to analogous protections, rather than as a
reproducible good or service. Boldrin and Levine argue that "government does not ordinarily enforce
monopolies for producers of other goods. This is because it is widely recognized that monopoly creates many
social costs. Intellectual monopoly is no different in this respect. The question we address is whether it also
creates social benefits commensurate with these social costs."
[181]

International standards relating to Intellectual Property Rights are enforced through Agreement on Trade
Related Aspects of Intellectual Property Rights (TRIPS).
[182]
In the US, IP other thancopyrights is regulated by
the United States Patent and Trademark Office.
The US Constitution included the power to protect intellectual property, empowering the Federal government
"to promote the progress of science and useful arts, by securing for limited times to authors and inventors the
exclusive right to their respective writings and discoveries".
[183]
Boldrin and Levine see no value in such state-
enforced monopolies stating, "we ordinarily think of innovative monopoly as an oxymoron.
[184][185]
Further they
comment, 'intellectual property' "is not like ordinary property at all, but constitutes a government grant of a
costly and dangerous private monopoly over ideas. We show through theory and example that intellectual
monopoly is not necessary for innovation and as a practical matter is damaging to growth, prosperity, and
liberty" .
[183]
Steelman defends patent monopolies, writing, "Consider prescription drugs, for instance. Such
drugs have benefited millions of people, improving or extending their lives. Patent protection enables drug
companies to recoup their development costs because for a specific period of time they have the sole right to
manufacture and distribute the products they have invented."
[186]
The court cases by 39 pharmaceutical
companies against South Africa's 1997 Medicines and Related Substances Control Amendment Act, which
intended to provide affordable HIV medicines has been cited as a harmful effect of patents.
[187][188][189]

One attack on IPR is moral rather than utilitarian, claiming that inventions are mostly a collective, cumulative,
path dependent, social creation and therefore, no one person or rm should be able to monopolize them even
for a limited period.
[190]
The opposing argument is that the benefits of innovation arrive sooner when patents
encourage innovators and their investors to increase their commitments. Roderick Long,
a libertarian philosopher, observes, "Ethically, property rights of any kind have to be justified as extensions of
the right of individuals to control their own lives. Thus any alleged property rights that conflict with this moral
basislike the "right" to own slavesare invalidated. In my judgment, intellectual property rights also fail to
pass this test. To enforce copyright laws and the like is to prevent people from making peaceful use of the
information they possess. If you have acquired the information legitimately (say, by buying a book), then on
what grounds can you be prevented from using it, reproducing it, trading it? Is this not a violation of the freedom
of speech and press? It may be objected that the person who originated the information deserves ownership
rights over it. But information is not a concrete thing an individual can control; it is a universal, existing in other
people's minds and other people's property, and over these the originator has no legitimate sovereignty. You
cannot own information without owning other people".
[191]
Machlup concluded that patents do not have the
intended effect of enhancing innovation.
[192]
Self-declared anarchist Proudhon, in his 1847 seminal work noted,
"Monopoly is the natural opposite of competition," and continued, "Competition is the vital force which animates
the collective being: to destroy it, if such a supposition were possible, would be to kill society"
[193][194]

Mindeli and Pipiya hold that the knowledge economy is an economy of abundance
[195]
because it relies on the
"infinite potential" of knowledge and ideas rather than on the limited resources of natural resources, labor and
capital. Allison envisioned an egalitarian distribution of knowledge.
[196]
Kinsella claims that IPR create artificial
scarcity and reduce equality.
[197][198][199]
Bouckaert wrote, "Natural scarcity is that which follows from the
relationship between man and nature. Scarcity is natural when it is possible to conceive of it before any human,
institutional, contractual arrangement. Artificial scarcity, on the other hand, is the outcome of such
arrangements. Artificial scarcity can hardly serve as a justification for the legal framework that causes that
scarcity. Such an argument would be completely circular. On the contrary, artificial scarcity itself needs a
justification"
[200][201]
Corporations fund much IP creation and can acquire IP they do not create,
[202]
to which
Menon and others object.
[203][204]
Andersen claims that IPR has increasingly become an instrument in eroding
public domain.
[205]

Ethical and legal issues include: Patent infringement, copyright infringement, trademark
infringement, patent and copyright misuse, submarine patents, biological
patents, patent, copyright andtrademark trolling, Employee raiding and monopolizing
talent, Bioprospecting, biopiracy and industrial espionage, digital rights management.
Notable IP copyright cases include Napster, Eldred v. Ashcroft and Air Pirates.
International issues[edit]
While business ethics emerged as a field in the 1970s, international business ethics did not emerge until the
late 1990s, looking back on the international developments of that decade.
[206]
Many new practical issues arose
out of the international context of business. Theoretical issues such as cultural relativity of ethical values
receive more emphasis in this field. Other, older issues can be grouped here as well. Issues and subfields
include:
The search for universal values as a basis for international commercial behaviour.
Comparison of business ethical traditions in different countries. Also on the basis of their respective GDP
and [Corruption rankings].
Comparison of business ethical traditions from various religious perspectives.
Ethical issues arising out of international business transactions; e.g., bioprospecting and biopiracy in the
pharmaceutical industry; the fair trade movement; transfer pricing.
Issues such as globalization and cultural imperialism.
Varying global standardse.g., the use of child labor.
The way in which multinationals take advantage of international differences, such as outsourcing
production (e.g. clothes) and services (e.g. call centres) to low-wage countries.
The permissibility of international commerce with pariah states.
The success of any business depends on its financial performance. Financial accounting helps the
management to report and also control the business performance.
The information regarding the financial performance of the company plays an important role in enabling people
to take right decision about the company. Therefore, it becomes necessary to understand how to record based
on accounting conventions and concepts ensure unambling and accurate records.
Foreign countries often use dumping as a competitive threat, selling products at prices lower than their normal
value. This can lead to problems in domestic markets. It becomes difficult for these markets to compete with
the pricing set by foreign markets. In 2009, the International Trade Commission has been researching anti-
dumping laws. Dumping is often seen as an ethical issue, as larger companies are taking advantage of other
less economically advanced companies.
Economic systems[edit]
Political economy and political philosophy have ethical implications, particularly regarding the distribution of
economic benefits.
[207]
John Rawls and Robert Nozick are both notable contributors. For example, Rawls has
been interpreted as offering a critique of offshore outsourcing on social contract grounds, whereas Nozick's
libertarian philosophy rejects the notion of any positive corporate social obligation.
Law and regulation[edit]
Very often it is held that business is not bound by any ethics other than abiding by the law. Milton Friedman is
the pioneer of the view. He held that corporations have the obligation to make a profit within the framework of
the legal system, nothing more.
[208]
Friedman made it explicit that the duty of the business leaders is, "to make
as much money as possible while conforming to the basic rules of the society, both those embodied in the law
and those embodied in ethical custom".
[209]
Ethics for Friedman is nothing more than abiding by 'customs' and
'laws'. The reduction of ethics to abidance to laws and customs however have drawn serious criticisms.
Counter to Friedman's logic it is observed
[by whom?]
that legal procedures are technocratic, bureaucratic, rigid and
obligatory where as ethical act is conscientious, voluntary choice beyond normativity.
[210]
Law is retroactive.
Crime precedes law. Law against a crime, to be passed, the crime must have happened. Laws are blind to the
crimes undefined in it.
[211]
Further, as per law, "conduct is not criminal unless forbidden by law which gives
advance warning that such conduct is criminal.
[212]
Also, law presumes the accused is innocent until proven
guilty and that the state must establish the guilt of the accused beyond reasonable doubt. As per liberal laws
followed in most of the democracies, until the government prosecutor proves the firm guilty with the limited
resources available to her, the accused is considered to be innocent. Though the liberal premises of law is
necessary to protect individuals from being persecuted by Government, it is not a sufficient mechanism to
make firms morally accountable.
[213][214][215][216]

Implementation[edit]
Corporate policies[edit]

This section needs additional citations for verification. Please help improve this
article by adding citations to reliable sources. Unsourced material may
be challenged and removed. (March 2011)
As part of more comprehensive compliance and ethics programs, many companies have formulated internal
policies pertaining to the ethical conduct of employees. These policies can be simple exhortations in broad,
highly generalized language (typically called a corporate ethics statement), or they can be more detailed
policies, containing specific behavioural requirements (typically called corporate ethics codes). They are
generally meant to identify the company's expectations of workers and to offer guidance on handling some of
the more common ethical problems that might arise in the course of doing business. It is hoped that having
such a policy will lead to greater ethical awareness, consistency in application, and the avoidance of ethical
disasters.
An increasing number of companies also require employees to attend seminars regarding business conduct,
which often include discussion of the company's policies, specific case studies, and legal requirements. Some
companies even require their employees to sign agreements stating that they will abide by the company's rules
of conduct.
Many companies are assessing the environmental factors that can lead employees to engage in unethical
conduct. A competitive business environment may call for unethical behaviour. Lying has become expected in
fields such as trading. An example of this are the issues surrounding the unethical actions of the Saloman
Brothers.
Not everyone supports corporate policies that govern ethical conduct. Some claim that ethical problems are
better dealt with by depending upon employees to use their own judgment.
Others believe that corporate ethics policies are primarily rooted in utilitarian concerns, and that they are mainly
to limit the company's legal liability, or to curry public favour by giving the appearance of being a good
corporate citizen. Ideally, the company will avoid a lawsuit because its employees will follow the rules. Should a
lawsuit occur, the company can claim that the problem would not have arisen if the employee had only followed
the code properly.
Sometimes there is disconnection between the company's code of ethics and the company's actual practices.
Thus, whether or not such conduct is explicitly sanctioned by management, at worst, this makes the policy
duplicitous, and, at best, it is merely a marketing tool.
Jones and Parker write, "Most of what we read under the name business ethics is either sentimental common
sense, or a set of excuses for being unpleasant."
[217]
Many manuals are procedural form filling exercises
unconcerned about the real ethical dilemmas. For instance, US Department of Commerce ethics program
treats business ethics as a set of instructions and procedures to be followed by 'ethics officers'.,
[32]
some others
claim being ethical is just for the sake of being ethical.
[218]
Business ethicists may trivialize the subject, offering
standard answers that do not reflect the situation's complexity.
[210]

Ethics officers[edit]

This section needs additional citations for verification. Please help improve this
article by adding citations to reliable sources. Unsourced material may
be challenged and removed. (March 2011)
Ethics officers (sometimes called "compliance" or "business conduct officers") have been appointed formally by
organizations since the mid-1980s. One of the catalysts for the creation of this new role was a series of fraud,
corruption, and abuse scandals that afflicted the U.S. defense industry at that time. This led to the creation of
the Defense Industry Initiative (DII), a pan-industry initiative to promote and ensure ethical business practices.
The DII set an early benchmark for ethics management in corporations. In 1991, the Ethics & Compliance
Officer Association(ECOA)originally the Ethics Officer Association (EOA)was founded at the Center for
Business Ethics (at Bentley College, Waltham, MA) as a professional association for those responsible for
managing organizations' efforts to achieve ethical best practices. The membership grew rapidly (the ECOA
now has over 1,200 members) and was soon established as an independent organization.
Another critical factor in the decisions of companies to appoint ethics/compliance officers was the passing of
the Federal Sentencing Guidelines for Organizations in 1991, which set standards that organizations (large or
small, commercial and non-commercial) had to follow to obtain a reduction in sentence if they should be
convicted of a federal offense. Although intended to assist judges with sentencing, the influence in helping to
establish best practices has been far-reaching.
In the wake of numerous corporate scandals between 2001 and 2004 (affecting large corporations
like Enron, WorldCom and Tyco), even small and medium-sized companies have begun to appoint ethics
officers. They often report to the Chief Executive Officer and are responsible for assessing the ethical
implications of the company's activities, making recommendations regarding the company's ethical policies,
and disseminating information to employees. They are particularly interested in uncovering or preventing
unethical and illegal actions. This trend is partly due to the SarbanesOxley Act in the United States, which was
enacted in reaction to the above scandals. A related trend is the introduction of risk assessment officers that
monitor how shareholders' investments might be affected by the company's decisions.
The effectiveness of ethics officers is not clear. If the appointment is made primarily as a reaction to legislative
requirements, one might expect little impact, at least over the short term. In part, this is because ethical
business practices result from a corporate culture that consistently places value on ethical behaviour, a culture
and climate that usually emanates from the top of the organization. The mere establishment of a position to
oversee ethics will most likely be insufficient to inculcate ethical behaviour: a more systemic programme with
consistent support from general management will be necessary.
The foundation for ethical behaviour goes well beyond corporate culture and the policies of any given company,
for it also depends greatly upon an individual's early moral training, the other institutions that affect an
individual, the competitive business environment the company is in and, indeed, society as a whole.
Academic discipline[edit]
As an academic discipline, business ethics emerged in the 1970s. Since no academic business ethics journals
or conferences existed, researchers published in general management journals, and attended general
conferences. Over time, specialized peer-reviewed journals appeared, and more researchers entered the field.
Corporate scandals in the earlier 2000s increased the field's popularity. As of 2009, sixteen academic journals
devoted to various business ethics issues existed, with Journal of Business Ethics and Business Ethics
Quarterly considered the leaders.
[219]

The International Business Development Institute
[220]
is a global non-profit organization that represents 217
nations and all 50 United States. It offers a Charter in Business Development (CBD) that focuses on ethical
business practices and standards. The Charter is directed by Harvard, MIT, and Fulbright Scholars, and it
includes graduate-level coursework in economics, politics, marketing, management, technology, and legal
aspects of business development as it pertains to business ethics. IBDI also oversees the International
Business Development Institute of Asia
[221]
which provides individuals living in 20 Asian nations the opportunity
to earn the Charter.
Religious views[edit]
In Sharia law, followed by many Muslims, banking specifically prohibits charging interest on loans.
[citation
needed]
Traditional Confucian thought discourages profit-seeking.
[222]
Christianity offers the Golden
Rule command, "Therefore all things whatsoever ye would that men should do to you, do ye even so to them:
for this is the law and the prophets."
[223]
according to the article "Theory of the real economy", there is a more
narrow point of view from the Christianity faith towards the relationship between ethics and religious traditions.
This article stresses about how capable is Christianity of establishing reliable boundaries for financial
institutions. one criticism comes from Pope Benedict by describing the "damaging effects of the real economy
of badly managed and largely speculative financial dealing."
[224]

Related disciplines[edit]
Business ethics is part of the philosophy of business, the branch of philosophy that deals with the philosophical,
political, and ethical underpinnings of business and economics.
[225]
Business ethics operates on the premise,
for example, that the ethical operation of a private business is possiblethose who dispute that premise, such
as libertarian socialists, (who contend that "business ethics" is an oxymoron) do so by definition outside of the
domain of business ethics proper.
[citation needed]

The philosophy of business also deals with questions such as what, if any, are the social responsibilities of a
business; business management theory; theories of individualism vs. collectivism;free will among participants in
the marketplace; the role of self interest; invisible hand theories; the requirements of social justice; and natural
rights, especially property rights, in relation to the business enterprise.
[citation needed]

Business ethics is also related to political economy, which is economic analysis from political
and historical perspectives. Political economy deals with the distributive consequences of economic actions. It
asks who gains and who loses from economic activity, and is the resultant distribution fair or just, which are
central ethical issues.
[citation needed]

See also[edit]
Bribery
Business culture
Business Ethics Quarterly
Business and Professional Ethics Journal
Business law
Corporate behaviour
Corporate crime
Corporate social entrepreneurship
Corporate social responsibility
Corruption
Ethicism
Ethics
Ethical implications in contracts
Ethical consumerism
Ethical code
Ethical job
Fiduciary
Journal of Business Ethics
Journal of Business Ethics Education
Management
Organizational ethics
Optimism bias
Penny stock scam
Strategic misrepresentation
Strategic planning
References[edit]
1. ^ "Business Ethics (Stanford Encyclopedia of Philosophy)". Plato.stanford.edu. 2008-04-16. Retrieved
2013-06-04.
2. ^ Smith, A (1776/ 1952) An Inquiry Into the Nature and Causes of the Wealth of Nations. Chicago, IL:
University of Chicago Press, p. 55
3. ^ Berle, A. A., & Means, G. C. (1932). The Modern Corporation and Private Property. New Jersey:
Transaction Publishers. In this book, Berle and Means observe, "Corporations have ceased to be merely
legal devices through which the private business transactions of individuals may be carried on. Though still
much used for this purpose, the corporate form has acquired a much larger significance. The corporation
has, in fact, become both a method of property tenure and a means of organizing economic life. Grown to
tremendous proportions, there may be said to have evolved a 'corporate system'as there once was a
feudal systemwhich has attracted to itself a combination of attributes and powers, and has attained a
degree of prominence entitling it to be dealt with as a major social institution. [] We are examining this
institution probably before it has attained its zenith. Spectacular as its rise has been, every indication seems
to be that the system will move forward to proportions which stagger imagination today [] They
[management] have placed the community in a position to demand that the modern corporation serve not
only the owners [] but all society." p. 1.
4. ^ Jones, Parker & et al. 2005, p. 17
5. ^ Slavery and the Making of AmericaEpisode 1. Video.google.com. Retrieved on 2010-09-02.
6. ^ Kingsolver, A. (2008). Capitalism. Encyclopedia of Race and Racism. J. H. Moore. Detroit, Macmillan
reference ISBN 0-02-866021-8 pp. 268271.
7. ^ Williams, E. (1994 [1944]). Capitalism and Slavery. Chapel Hill, The University of North Carolina Press.
"Slavery was not born of racism: rather, racism was the consequence of slavery. Unfree labor in the New
World was brown, white, black, and yellow; Catholic, Protestant and pagan"
8. ^ King Leopold II King of BelgiumKing of the Congo. Video.google.com. Retrieved on 2010-09-02.
9. ^ Robotham, D. A. Warehouses and Docks 1.No Smoking signs must be conspicuously posted in areas
where smoking is prohibited. 2.When smoking is permitted, as in offices in connection with warehouses,
NO Smoking signs and safe means for disposing of lighted smoking materials shall be provided at each
point of access to the NO Smoking areas. 3.Fire protection should be installed or provided in accordance
with codes and regulation of the authority having jurisdiction over the premises. (See Section 8, Fire
Protection and Control.) 4.Water hoses and / or portable fire extinguishers, of the proper type to protect
both building and contents must be provided convenient, conspicuously accessible location (See Section 8,
Fire Protection and Control.) 5.Fire extinguishers must not be blocked from view. Where material could
block the view of a fire extinguisher, some means of identifying its location must be provided. 6.Storage
buildings should be kept clean and orderly, as well as free from insects, rodents and other pests.
7.Throughout any storage area, warehouse, etc. metal containers with lids are to be available for waste
disposal. Oily rags must always be stored in metal containers with lids in place. Lids should be equipped
with fusible plugs in case of fire. 8.In any storage area, aisleways and passageways must be well marked
and free from obstruction. 9.Where mechanical equipment is used to move material within a storage area,
aisleways and passageways must be wide enough to prevent congestion. 10.Floors in storage areas must
be kept clean and dry as well as free from tripping hazards such as loose boards, protruding nails and other
material. 11.All floor holes through which materials might fall and create a hazard, must be properly
guarded by a cover that leaves no openings more than 1 wide, or if necessary, by a standard railing and
toe board. 12.Docks, floors and platforms need to be constructed of heavy material and should be checked
frequently for broken boards and dry rot. 13.Floors, docks and other surfaces should be inspected
periodically to ensure they are safe for employees. Any condition which could cause an accident must be
repaired as soon as possible. 14.All wall opening, more than 1 but less than 30 wide through which
materials might fall and create a hazard are to be guarded. 15.All platforms, open sided floors, walkways,
decks, etc. which are more than four feet above the ground or floor level must be equipped with guard rails,
midrails and toe board. 16.Floor load limit plates should be posted in a conspicuous place and those load
limits must be adhered to. 17.When material is stored in bins, the heavier objects should be placed in the
lower bins with the lighter material stored in upper bins. 18.Storage bins are to be constructed of material
strong enough to support the weight. Tall bins need to be secured so that they cannot be easily upset.
19.Storage bins should be so designed that material cannot easily fall out of them. Adequate stripping
material should be used along the leading edge to minimize this problem. 20.Benches, boxes, bins, etc.
must not be used to climb on. Only approved ladders or step stools are to be used for that purpose.
21.Ladders and other climbing equipment be kept in good condition and replaced or repaired when needed.
When finished using the item it must be adequately stored. 22.Stepladders are to be of commercial grade
or, as minimum meet or exceed class ll requirements. 23.Commodities which are incompatible with on
another must not be stored together. If they must be stored in the same area they shall be separated by
distance or partition which is adequate to eliminate the danger. 24.Commodities which qualify as ordinary
combustibles are not to be stored in piles exceeding 21 in height and no material be stored within 18 inches
of the ceiling or sprinkle heads. 25.Commodities which may be hazardous in combination should not be
stored where they can come in contact with each other. 26.Materials such as PUP joints, tall valves, short
steel bar stock, small diameter cylinders, etc., should be placed suitable racks or securely tied so they
cannot fall over. 27.Nails should not be used for hooks or to support heavy objects. 28.When uncrating
material and opening barrels, kegs, boxes, crates, etc., all projecting nails, wires, straps, etc., should be
removed before the job of unpacking is started . 29.When cutting or removing metal straps from bales,
crates or other packages, the workmen should stand clear where flying ends cannot strike them. 30.In
preparing material for shipment, employees should : 1.Use the proper type of container or package for the
material to be shipped. 2.Properly label the container or package. 3.Be sure the container is built to meet
requirements for strength. 4.Do not leave protruding nails or splinters. 5.Be sure that wire and metal band
and straps are pulled tight and that no sharp ends are left exposed. 31.Hand trucks or carts must not be
overloaded. 32.All skids and runways should be securely fastened as soon as they are put in position. B.
Storage Yards 1.All yard storage material should be neatly stored in designated areas, convenient for truck
unloading and loading. 2.Sufficient safe clearance for movement of all necessary vehicles must be provided
in warehouse yards. 3.Clearance limits signs should be posted wherever necessary. 4.Permanent aisles,
roadways and passageways must be kept clear of obstructions. 5.Except for large tanks, material should
not be stored on the bare ground. Racks, sacks, shoring, planks or other material should be under all stored
items. 6.Storage areas should be kept as free of vegetation and as possible. 7.Trash, junk and rubbish is to
be cleaned up and placed in proper receptacles. 8.Open pits, ditches, etc., must be guarded to protect
personnel. 9.Stored material should be stacked in a manner that makes it secure against sliding or collapse.
10.Material should not be left, piled or stacked within 8-6 of the center of a railroad track. 11.Derail and / or
bumper blocks are to be provided where a rolling freight car could contact other cars enter a building, work
or traffic area. 12.Skids used for moving pipe and other materials must be substantially built and should be
designed for their particular use. 13.All skids are to be securely fastened at one end at leas, and at both
ends if possible. 14. Pipe racks should be built substantially enough to carry the load for which they are
intended and must be kept in good repair. 15.Pipe should not be racked in tiers higher than five feet. Tiers
should be separated with stripping and should be securely blocked at the outside joints of pipe on each tier.
16.Pipe should in a yard can create hazards if precautions are not taken. Appropriate racks should be
provided, spacing between racks is necessary and choking of prevent it from rolling off a stack is required.
Other material to stored in a yard shall not be placed on top pipe. 17.Stripping for 4-inch pipe and smaller
should be 1-inch material. for pipe larger than 4-inch, 2-inch material shall be used. 18.All pipe under 6-inch
should be blocked with 1-inch material nailed to the stripping, 6-inch and larger pipe shall blocked with 2-
inch material, nailed to the stripping. 19.Where old or bent material is stored on pipe racks, particular care
should be taken in stacking and handling it to and from the rack. 20.Bins for heavy junk must be
substantially built and must be kept in good repair . 21.Heavy gloves and shoes should be worn, and
extreme care must be taken whenever it is necessary to get into a junk bin to load or unload the material
Rabigh Modern Company Limited. 2012(2005). Political Economy. A Handbook of Economic
Anthropology. J. G. Carrier. Northampton, MA, Edward Elgar ISBN 1-84376-175-0 pp. 4158
10. ^ Berger D., Easterly W, et al. (2010) Commercial Imperialism? Political Influence and Trade During the
Cold War. NBER Working Paper No. 15981.
11. ^ The article A History of Business Ethics by Richard T. De George of Santa Clara University (web page
version of DeGeorge, Richard. 2005, "History of Business Ethics", paper delivered at "The Accountable
Corporation", the third biennial global business conference sponsored by the Markkula Center for Applied
Ethics at Santa Clara University) as availed on March 30, 2010 observes, on the origin of business ethics
discourse, " The Second World War was over, the Cold War was ever present, and the War in Viet Nam
fostered a good deal of opposition to official public policy and to the so-called military-industrial complex,
which came in for increasing scrutiny and criticism. The Civil Rights movement had caught the public
imagination. The United States was becoming more and more of a dominant economic force. American-
based multinational corporations were growing in size and importance. Big business was coming into its
own, replacing small and medium-sized businesses in the societal image of business. The chemical
industry was booming with innovation, and in its wake came environmental damage on a scale that had not
previously been possible. The spirit of protest led to the environmental movement, to the rise of
consumerism, and to criticism of multinational corporations....Corporations, finding themselves under public
attack and criticism, responded by developing the notion of social responsibility. They started social
responsibility programs and spent a good deal of money advertising their programs and how they were
promoting the social good. Exactly what "social responsibility" meant varied according to the industry and
company
12. ^ Richard T. De George
13. ^
a

b
History of Business Ethics. Scu.edu (2005-02-19). Retrieved on 2010-09-02.
14. ^ Madsen, Essentials of Business Ethics
15. ^ Velasquez, Corporate Ethics: Losing it, Having it, Getting it, p. 229 as quoted in Cory 2005 Activist
Business EthicsThe passage quoted is: "Between 1970 and 1980, 11 percent of the largest American firms
were convicted of lawlessness, including bribery, criminal fraud, illegal campaign contributions, tax evasion,
or price-fixing. Well-known companies with four or more convictions included Braniff International, Gulf Oil,
and Ashland Oil. Firms with at least two convictions included Allied, American Airlines, Bethlehem Steel,
Diamond International, Firestone, Goodyear, International Paper, National Distillers, Northrop, Occidental
Petroleum, Pepsico, Phillips Petroleum, R.J. Reynolds, Schlitz, Seagram, Tenneco, and United Brands. The
recent Union Carbide disaster in Bhopal is well-known, as is the E.F. Hutton fiasco, the General Dynamics
fraud, and of course, the Wall Street scandals involving Ivan Boesky, David Levine, and Michael Milken...
Unethical behaviour in business more often than not is a systematic matter. To a large degree it is the
behaviour of generally decent people who normally would not think of doing anything illegal or immoral. But
they get backed into doing something unethical by the systems and practices of their own firms and
industries. Unethical behaviour in business generally arises when business firms fail to pay explicitly
attention to the ethical risks that are created by their own systems and practices."
16. ^ Richard De George, Business Ethics
17. ^ Manuel G. Velasquez, Business Ethics: Concepts and Cases.
18. ^ Moon, Chris Et al.(2001) Business Ethics. London: The Economist:119132
19. ^ MBA Institutes & Business school networks: IIMA, IIMB, IIMC, IIML, IIMK, IIMI, ISB, Great lakes, XLRI,
JBIMS, FMS. Coolavenues.com. Retrieved on 2010-09-02.
20. ^ Cullather Gleijeses, pp. 1637 The entire book discusses unethical business practices and CIA
collaborating with each other with appropriate documentary evidence.
21. ^ Confessions of An Economic Hit ManWhat Really Goes on Behind Global Affairs. Video.google.com.
Retrieved on 2010-09-02.
22. ^ Chomsky, N. (1989). Necessary Illusions: Thought Control in Democratic Societies London, Pluto
PressISBN 0-89608-366-7.
23. ^
a

b
Friedman, Milton (1970-09-13). "The Social Responsibility of Business is to Increase Its Profits". The
New York Times Magazine. Retrieved March 11, 2011.
24. ^ Friedman, M. (1984). "Milton Friedman respondsan interview with Friedman." Business and Society
84(5)
25. ^ Bevan, D. (2008).Philosophy: A Grounded Theory Approach and the Emergence of Convenient and
Inconvenient Ethics. Cutting Edge Issues in Business Ethics M. Painter-Morland and P. Werhane. Boston,
Springer. 24: 131152.
26. ^ "Milton Friedman goes on tour". The Economist. Jan 27, 2011. Retrieved March 12, 2011.
27. ^
a

b
Duska 2007, p. 11 Contemporary Reflections on Business Ethics.
28. ^ Cory 2005, pp. 734 Activist Business Ethics
29. ^ Drucker, P. (1981). " What is business ethics?" The Public Interest Spring(63): 1836.
30. ^ Cory 2005, p. 9 Activist Business Ethics
31. ^ Pinnington, A. H. and Lafferty, G. (2002). Human Resource Management in Australia. Melbourne: Oxford
University Press ISBN 0-19-551477-7
32. ^
a

b
Good Governance Program. (2004). Business Ethics: A manual for managing a responsible business
enterprise in emerging market economies. (pp.93128) Washington DC: Good Governance Program, US
Department of Commerce
33. ^ Hansmann, H., & Kraakman, R.(2000). The End of History for Corporate Law. Georgetown Law
Journal(89), 439468. The article says, "All thoughtful people believe that corporate enterprise should be
organized and operated to serve the interests of society as a whole, and that the interests of shareholders
deserve no greater weight in this social calculus than do the interests of any other members of society."
34. ^ Greenfield, K. (2006). The Failure of Corporate Law fundamental flaws & progressive possibilities.
Chicago: The University of Chicago Press ISBN 0-226-30693-3. Greenfield observes, "what is good for
shareholders is good for corporations, and what is good for corporations is good for society....If this
connection existed, the shareholder bandwagon would be attractive indeed. The problem is that advocates
for shareholder primacy do not purport to say how the connection occurs or test whether the connection is
true. p. 22
35. ^ Jones, Parker & et al. 2005, p. 5 observe, "when a company with shareholders gives some of the profits it
has made to investors who have not been involved in producing the value, this is seen as a reward for risk.
But why should the surplus generated by workers be given to someone else who almost certainly already
has a lot of money in the first place?"
36. ^ For a summary of the study seehttp://www.ibe.org.uk/userfiles/attitudes_to_be2012.pdf
37. ^
a

b
Dobson 1997, p. xvii
38. ^ Cetina, K. K., & Preda, A. (Eds.). (2005). The sociology of financial markets. Oxford University
Press ISBN 0-19-929692-8
39. ^ Huevel, K. et al., (2009). Meltdown: how greed and corruption shattered our financial system and how we
can recover. New York: Nation Books ISBN 1-56858-433-4.
40. ^
a

b
Boatright, J. R. Finance ethics
[dead link]
Frederic 2002, pp. 153163
41. ^ Aristotle 1948 Politics E. Barker, trans. Oxford: Clarendon, p. 38.
42. ^ Smith 1759, p. VI.i.15
[dead link]

43. ^ Smith 1759, p. III.iv.448
44. ^ Jevons, W.S. 1970 The Theory of Political Economy. Harmondsworth: Penguin. Jevons observes, "The
theoryis entirely based on a calculus of pleasure and pain: the object of economics is to maximize
happiness by purchasing pleasure, as it were, at the lowest cost of pain" (Jevons, 1970:91). Jevons also
noted, "The strength of preferences for a good, measured by individuals' willingness to pay for their
satisfaction at the margin, is an indirect measure of subjective states: it is from the quantitative effects of the
feelings that we must estimate their comparative amounts" (Jevons, 1970:83). O'Neil on the other hand
points out that the ideologists of neoliberalism "do not claim to prove that markets maximize well-being.
Rather they claim to show that in certain 'ideal' conditions the market will issue in a state of equilibrium,
defined as a state in which, so long as individuals' preferences and productive resources remain the same,
any departure from that state will involve a welfare change for the worse for some party, in the sense that a
previously satisfied preference will no longer be satisfied. O'Neill 1998, p. 54
45. ^ Montiel, P. J. (2003). Macroeconomics in Emerging Markets. Cambridge: Cambridge University Press
(pp. 214238) ISBN 0-521-78551-0. By the phrase 'financial repression', Montiel refers to the monitoring
and regulations on capital inows and outows, regulations on free entry and exit of national and
international financial institutions, the presence of state run financial institutions, stipulations on cash
reserve ratio or liquidity ratio, interest rate ceilings, guidelines regarding priority sector financing, and other
measures of monitory regulations.
46. ^ Wolf, Martin (Tuesday, July 24, 2007). "Wolf: In Defense of Neoliberalism". The Financial Times.
Retrieved March 11, 2011.
47. ^ welfare in terms of preference satisfaction O'Neill 1998, p. 56
48. ^ Hayek F.A. 1976 Law, Legislation and Liberty: Volume 2 London: Routledge and Kegan Paul, pp. 1530.
49. ^ O'Neill challenges the welfare claim based on the 'preference satisfaction' in the following words: The
empirical problem is thisthat with all the increase in the variety of goods and services that consumers are
able to buy, there is no corresponding reported increase in perceived satisfaction. The total amount of
welfare understood as preference satisfaction over dissatisfaction appears to be remarkably static in
modern market societies. There appears to be little evidence of any growth in the gap between preference
satisfaction and dissatisfaction. Quoting from Lane, he points out, "The assumed positive relationship
between markets and wellbeing understood as preference satisfaction is not confirmed by empirical
evidence Indeed, the fact that there is no increase in preference satisfaction over dissatisfaction no
longer entails immediately that there is no increase in welfare. Not all dissatisfaction is a sign of a life that
has taken a turn for the worse. Indeed, it can indicate the opposite, that a person is exercising capacities
that are part of what it is for a life to be improving. Consider a pianist, who starts being greatly satisfied with
her initial developments, but who, as she continues to develop technically and artistically, becomes ever
more critical of her performance. Her increasing dissatisfaction is a symptom of increasing accomplishment.
Or again consider the contented slave, wage earner or housewife who become discontented with their lot: it
is better for them that this is so and not just in virtue of other possible improvements this might bring. This is
an old point." O'Neill 1998, pp. 5660
50. ^ Schaler, J. A. Corruption.Hamowy, Kuznicki & Steelman 2008, pp. 105107 What the libertarians
consider as corruption is interesting. The author concludes abruptly, "if we reduce what the government
does, we also will reduce corruption. It also may offer a way to identify and understand the moral decline
that follows (and fosters) the continual expansion of the welfare state.(p. 107). However, the author is
reluctant to admit that private individual/ firm corruption. For instance, he writes, "Paying money for goods
or services provided by a public official constitutes bribery and often involves punishment for the parties to
the transaction. Why bribery is invariably equated with corruption and condemned? It is not obviously
inefficient. Indeed, in highly collectivized nations, paying public officials to allow what would otherwise be
normal market exchanges may contribute much to human welfare. (p. 105). He continues, "These standard
accounts of corruption and bribery involve efficiency and democratic accountability, not liberty"... "In some
cases, government actions that are particularly prone to briberylike the licensing of economic activity
inherently restrict individual liberty" "It is possible that bribery might liberalize some parts of society"...
However, he presents "in the financing of election campaigns" individuals and groups are simply
"contributing to the campaigns of chosen candidates" and observes, "Campaign finance regulations, like the
corruption they seek to prevent, actually serve the narrow interests of parties and incumbents instead of the
interest voters have in open competition for legislative seats. Thus, campaign finance restrictions may be
deemed a kind of corruption". He further points out, "However, as Nathaniel Persily discovered, campaign
finance appears to have no real relationship one way or the other to trust in government. In any case, public
trust in government tends to reduce, rather than protect, individual liberty (p. 106). In his statement on the
primacy of liberty he argues, "But libertarians might recognize that corruption may be more than an excuse
to limit liberty".
51. ^ The neoclassical economists of the first generation in the early 70s, while the impoverished world was still
struggling to recover from the adverse effects of the second world war and the consequent cold wars,
recommended deregulation of financial systems of the impoverished nations which they termed liberating
financial systems from the 'financial repression'. Chili, Uruguay and Argentina were chosen to be the labs of
financial experiments. Contrary to the claims the countries experienced severe economic and financial
setbacks of soaring interest rates, waves of bank failures and other bankruptcies, extreme asset price
volatility and extensive loan defaults, the real sector entered deep and prolonged recessions contrary to
what had been projected by the ideologues (Grabel, I., 2008). Global finance and development: false starts,
dead ends and social economic alternatives. Davis, J. B.; Dolfsma, W. (eds.). The Elgar Companion to
Social Economics (. Cheltenham: Edward Elgar. pp. 498, 501.
52. ^ Lewis, P.; Stein, H. (1997). "Shifting fortunes: the political economy of financial liberalization in
Nigeria". World Development 25 (1). pp. 522.
53. ^ Grabel, Ilene (2003), 'International private capital flows and developing countries', in Ha-Joon Chang
(ed.), Rethinking Development Economics, London: Anthem Press, pp. 32545
54. ^ Eichengreen, B. (2001). "Capital Account Liberalization: What Do Cross-Country Studies Tell Us?". The
World Bank Economic Review 15 (3): 341.doi:10.1093/wber/15.3.341.
55. ^ Valdez, J. G. (1995). Pinochet's Economists: The Chicago School in Chili Cambridge University
Press ISBN 0-521-45146-9
56. ^ Samuels, W., J (1977). Ideology in Economics In S. Weintraub (Ed.), Modern Economic Thought (pp.
467484). Oxford: Blackwell.
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66. ^ Graeber, David (2002). "The Anthropology of Globalization (with Notes on Neomedievalism, and the End
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68. ^ Bribery committed by large companies and multinational corporationssocial problems and systematic,
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71. ^ Dobson 1997, p. ix "Experts of finance tend to view business firm as, 'an abstract engine that uses money
today to make money tomorrow'
72. ^ Miller, M. H. (1986). "Behavioral Rationality in Finance: The Case of Dividends". Journal of Business (p.
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73. ^ Dobson 1997, p. xvi In this regard Dobson points out, "An apologist for the finance paradigm might defend
its conceptual rigidity as follows. Although there are undoubtedly motivations other than wealth
maximization that influence, and should influence, behaviour, the assumptions of the finance paradigm
provide a reasonable approximation of agents' behaviour over a broad spectrum of business environments.
The firm is an economic mechanism and agents act within the firm for fundamentally economic reasons. In
addition, the construction of mathematically robust models requires simplifying assumptions. Like perfect-
and-frictionless capital markets, wealth maximization is one such simplifying assumption. All disciplines
have their conceptual boundaries, and any value-based normative consideration of human behaviour simply
lies beyond finance's conceptual boundary. Indeed, if finance were to stretch this boundary in an attempt to
encompass such questions, mathematical rigor would be lost. Finance would be set adrift in the
scientifically unnavigable sea of moral philosophy. Wealth maximization provides a secure anchorage from
which a rigorous theory of financial-market behaviour can be built. Says Norman Bowie, "Like perfect
information and zero transaction costs, psychological egoism [i.e., wealth maximization] is one of the
simplifying assumptions needed for the mathematics of equilibrium analysis"
74. ^ Dobson 1997, pp. xvi, 142
75. ^ Armstrong, M. B. (2002). Ethical Issues in Accounting. In N. E. Bowie (Ed.), The Blackwell guide to
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77. ^ Kuchinke, K. P. (2005). The self at work: theories of persons, meaning of work and their implications for
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78. ^ Dirkx, J. M. (2005). To develop a firm persuasion: Workplace learning and the problem of meaning.Elliott
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79. ^ Terkel, S. (1974) Working: People Talk About What They Do All Day and How They Feel About What
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being about work, is, by its very nature, about violenceto the spirit as well as to the body. It is about ulcers
as well as accidents, about shouting matches as well as fistfights, about nervous breakdowns as well as
kicking the dog around. To survive the day is triumph enough for the walking wounded among the great
many of us", p. xii.
80. ^
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81. ^ Duska, R. Employee Rights.Frederic 2002, pp. 257268
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85. ^ Machan 2007, p. 68 Machan observes, "It is futile to deny that owners have and exercise considerable
economic power. Such power is the ability to make what one wants actually happen. When a worker wants
to keep a job but the owner does not want to employ him or her, the worker loses out, usually, although on
a larger scale this doesn't hold true. Of course, if the worker wants to quit, he or she will win, but that is
often the less visible situation. Just consider the worry about downsizing. It is also often true that employers
are able to find replacements for workers more readily than workers can nd new jobs on their own terms.
Even when this is not the case, the worker's situation is deemed to be more dire because of the often
greater wealth of the employer. Whether this imbalance of bargaining power is justied or not is what
ultimately must be addressed by those who believe that there is greater merit in a free market system than
in one that is regimented by governmentsay, via a workers' democracy.
86. ^ Machan 2007, p. 67
87. ^ Legge, K. The ethics of HRM in dealing with individual employees without collective
representation. Pinnington, Macklin & Campbell 2007, pp. 35 ff
88. ^ Morehead, A., Steele, M., Stephen, K., and Duffin, L. (1997). Changes at Work: The 1995 Australian
Workplace Industrial Relations Survey. Melbourne: Longman
89. ^ Reinhold, R. (2000). 'Union Membership in 2000: Numbers Decline During Record Economic Expansion',
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90. ^ Akyeampong, E. (1997). 'A Statistical Portrait of the Trade Union Movement', Perspectives on Labour and
Income, 9: 4554.
91. ^ Kuruvilla, S., Das, S., Kwon, H., and Kwon, S. (2002). 'Trade Union Growth and Decline in Asia', British
Journal of Industrial Relations, 40(3): 43161.
92. ^ Watson T.J (2003). 'Ethical Choice in Managerial Work: The Scope for Managerial Choices in an Ethically
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93. ^ Woodd, Maureen (1997). "Human resource specialistsguardians of ethical conduct?". Journal of
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94. ^ Guest, David E (1999). "Human resource managementthe workers' verdict". Human Resource
Management Journal 9 (3): 5. doi:10.1111/j.1748-8583.1999.tb00200.x.
95. ^ However, weakening of labour unions, what they call 'notorious,' is celebrated as a victory of 'free market'
by moralists bent towards neoliberal ideologyMachan 2007, p. 29
96. ^ Machan justifies his displeasure with unions, "So, unions are notorious for promoting featherbedding,
making jobs that have no real function any longer. A most recent case reported involved a new urinal that
doesn't require ushing. Don't ask me for the detailsit's a baffling idea. But, the story goes, when in
Philadelphia it was recently introduced, the plumber's union negotiated a deal whereby despite the fact that
it wasn't needed, plumbing was supplied so that plumbers wouldn't have to find new employment. This kind
of thing used to be routine with the railroads, when locomotives were upgraded and unions secured deals
whereby the same number of people would continue to man the engines.Machan 2007, p. 29
97. ^ Desai, M. (1991). Issues concerning setting up of social work specializations in India. International Social
Work, 34, 8395
98. ^ Guest, D. E. HRM and performance: can partnership address the ethical dilemmas? Pinnington, Macklin
& Campbell 2007, pp. 5265
99. ^ Storey, D.J. (1985). "THE PROBLEMS FACING NEW FIRMS [1]". Journal of Management Studies 22 (3):
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100. ^ Ouchi, William G. (1981). Theory Z. New York: Avon Books. ISBN 978-0-380-59451-1.
101. ^ Pinnington, Macklin & Campbell 2007, p. 3 Introduction: ethical human resource management
102. ^ Schneider, B., Hanges, P., Smith, D., and Salvaggio, A. (2003). 'Which Comes First: Employee Attitudes
or Organizational Financial and Market Performance?', Journal of Applied Psychology, 88: 83651.
103. ^ Guest, D. E., Michie, J., Conway, N., and Sheehan, M. (2003). 'Human Resource Management and
Corporate Performance in the UK', British Journal of Industrial Relations, 41(2): 291314.
104. ^ Boxall, P., & Purcell, J. Strategic management and human resources: the pursuit of productivity, exibility,
and legitimacy Pinnington, Macklin & Campbell 2007, pp. 6680
105. ^ Murphy 2002, pp. 165185
106. ^ Jones, Parker & et al. 2005, p. 3
107. ^ Murphy 2002, pp. 168169
108. ^ Brenkert, G. K. Marketing ethics.Frederic 2002, pp. 179
109. ^ Marcoux, A. (2009). Business-Focused Business Ethics. in Normative Theory and Business Ethics. J.
Smith. Plymouth Rowman & Littlefield: pp. 1734 ISBN 0-7425-4841-4
110. ^ Fisher, B., 2003-05-27 "Ethics of Target Marketing: Process, Product or Target?" Paper presented at the
annual meeting of the International Communication Association, Marriott Hotel, San Diego, CA
111. ^ Groucutt, J., P. Leadley, et al. (2004). Marketing: essential principles, new realities. London, Kogan p.
75 ISBN 0-7494-4114-3
112. ^ Murphey, P. E., G. R. Laczniak, et al. (2007). "An ethical basis for relationship marketing: a virtue ethics
perspective". European Journal of Marketing 41: 3757.doi:10.1108/03090560710718102.
113. ^ Free as in Freedom: Table of Contents. Oreilly.com. Retrieved on 2010-09-02.
114. ^ Labelling of GMO Products: Freedom of Choice for Consumers. Gmo-compass.org. Retrieved on 2010-
09-02.
115. ^ EUROPAFood SafetyBiotechnologyGM Food & FeedLabelling. Ec.europa.eu (2003-09-22).
Retrieved on 2010-09-02.
116. ^ Anand, V.; Rosen, C. C. (2008). "The Ethics of Organizational Secrets". Journal of Management
Inquiry 17(2): 97. doi:10.1177/1056492607312785.
117. ^ Brenkert, G. K. Marketing ethics Frederic 2002, pp. 178193
118. ^ Murphy 2002, p. 165
119. ^ Borgerson, J. L. and J. E. Schroeder (2008). Building an Ethics of Visual Representation: Contesting
Epistemic Closure in Marketing Communication. in Cutting Edge Issues in Business Ethics. M. P. Morland
and P. Werhane. Boston, Springer pp. 87108 ISBN 1-4020-8400-5
120. ^ Online Etymology Dictionary. Etymonline.com. Retrieved on 2010-09-02.
121. ^ Davies 2007, p. 25
122. ^ Locke, John (1690),Sec. 25 Of Property (chapter 5), inSecond Treatise on Government: "God, who hath
given the world to men in common, hath also given them reason to make use of it to the best advantage of
life, and convenience. The earth, and all that is therein, is given to men for the support and comfort of their
being. And tho' all the fruits it naturally produces, and beasts it feeds, belong to mankind in common, as
they are produced by the spontaneous hand of nature; and no body has originally a private dominion,
exclusive of the rest of mankind, in any of them, as they are thus in their natural state: yet being given for
the use of men, there must of necessity be a means to appropriate them some way or other, before they
can be of any use, or at all beneficial to any particular man. The fruit, or venison, which nourishes the wild
Indian, who knows no enclosure, and is still a tenant in common, must be his, and so his, i.e. a part of him,
that another can no longer have any right to it, before it can do him any good for the support of his life." He
continues in sec.27, "Though the earth, and all inferior creatures, be common to all men, yet every man has
a property in his own person: this nobody has any right to but himself. The labour of his body, and the work
of his hands, we may say, are properly his. Whatsoever then he removes out of the state that nature hath
provided, and left it in, he hath mixed his labour with, and joined to it something that is his own, and thereby
makes it his property. It being by him removed from the common state nature hath placed it in, it hath by
this labour something annexed to it, that excludes the common right of other men: for this labour being the
unquestionable property of the labourer, no man but he can have a right to what that is once joined to, at
least where there is enough, and as good, left in common for others.
123. ^ Harris, J.W. (1996), "Who owns My Body", Oxford Journal of Legal Studies, 16: 5584. Harris finds this
argument a 'spectacular non sequitur,' '[f]rom the fact that nobody owns me if I am not a slave, it simply
does not follow that I must own myself'(p. 71)
124. ^ Day Patrick, (2002) The Self-Ownership Thesis: A Critique. Locke founded his notion of property rights on
the premise of 'self-ownership' of course excluding the slaves from such ownership. Day critiques Locke's
ontology saying, "The answer to the question is to be found in Locke's ontology. There exist God, Divine
Artifacts and Human Artifacts. God owns Himself. All makers own what they have made, so that God also
owns Divine Artifacts. There are Direct Divine Artifacts and Indirect Divine Artifacts. The unique Direct
Divine Artifact is Land, which God made out of nothing. He made Indirect Divine Artifacts by mingling His
Labour with Land. Among these are wild plants, wild animals and Man (Adam and his descendants). God
gave Land 'and all inferior creatures' 'to men in common'" (Day, 2002:)
125. ^ Day, P. J. (1966). "Locke on Property". The Philosophical Quarterly 16 (64): 207
220. doi:10.2307/2218464.JSTOR 2218464.
126. ^ Bentham, J. (1931), Theory of Legislation, London: Kegan Paul, p. 113 ISBN 978-1-103-20150-1
127. ^ Proudhon in his essay on property asked, "If property is a natural, absolute, imprescriptible, and
inalienable right, why, in all ages, has there been so much preoccupation with its origin? For this is one of
its distinguishing characteristics. The origin of a natural right: Good God, whoever inquired into the origin of
the rights of liberty, security, or equality?" Proudhon, P.-J. ([1840] 1969). What is property, p. 69 ISBN 1-
60680-212-7
128. ^ Davies 2007, p. 27
129. ^ Blackstone, W. (1766), Commentaries on the Laws of England, Volume II, Of the Rights of Things,
Oxford: Clarendon Press.
130. ^ Ely, J. W. (2008). The Guardian of Every Other Right. Oxford: Oxford University Press ISBN 0-19-
532332-7. Ely notes, 'In 1740 South Carolina declared slaves "to be chattels personal, in the hands of their
owners and possessors ' Because slaves were property, they could be purchased, sold, inherited, taxed, or
seized to pay the master's debts The slave codes also minutely governed the slaves' activities, prohibiting
them from assembling, running away, owning goods or livestock, or using rearms. Moreover, it was
unlawful to sell liquor to slaves or to teach them to read and write. Finally, crimes committed by slaves
received harsher punishment than did equivalent offenses by free persons (p. 15).
131. ^ Wishart, D. J. (1994). An Unspeakable Sadness The Dispossession of the Nebraska Indians. Lincoln:
University of Nebraska Press ISBN 0-8032-9795-5
132. ^ "Jefferson's Instructions to Lewis, June 20, 1803"Letters of the Lewis and Clark Expedition with Related
Documents, 17831854, ed. Donald Jackson (Urbana: University of Illinois Press, 1978) 1: 6166.
133. ^ Robertson 2005
134. ^ Michael, J. (2008). Identity and the Failure of America. Minneapolis: University of Minnesota Press.
Michael observes that Thomas Jefferson, in spite of all his freedom speeches, was himself a slave owner,
owning slaves as his property, p.45
135. ^ In this regards Ross (1994:14) notes, "within the liberal context the private nature of property is
naturalized and universalized, as though other forms are somehow less ethically defensible"
136. ^ Rose 1994, p. 58 Rose observes, "What is the purpose of property under this . . . understanding? The
purpose is to accord to each person or entity what is 'proper' or 'appropriate' to him or her. Indeed, this
understanding of property historically made no strong distinction between 'property' and 'propriety', and one
finds the terminology mixed up to a very considerable degree in historical texts. And what is 'proper' or
appropriate, on this vision of property, is that which is needed to keep good order in the commonwealth or
body politic"
137. ^ Jefferson wrote, "[W]hile it is a moot question whether the origin of any kind of property is derived from
nature at all, it would be singular to admit a natural and even an hereditary right to inventors. It is agreed by
those who have seriously considered the subject, that no individual has, of natural right, a separate property
in an acre of land, for instance. By an universal law, indeed, whatever, whether xed or movable, belongs to
all men equally and in common, is the property for the moment of him who occupies it, but when he
relinquishes the occupation, the property goes with it. Stable ownership is the gift of social law, and is given
late in the progress of society. It would be curious then, if an idea, the fugitive fermentation of an individual
brain, could, of natural right, be claimed in exclusive and stable property."Jeferrson's Letter to
McPherson in, Boyle, J. (2008). The Public Domain: Enclosing the Commons of the Mind. New Haven: Yale
University Press ISBN 0-300-13740-0.
138. ^ Daykin, Jeffer B. (2006). ""They Themselves Contribute to Their Misery by Their Sloth": The Justification
of Slavery in Eighteenth-Century French Travel Narratives". The European Legacy 11 (6):
623.doi:10.1080/10848770600918117.
139. ^ Gordon, D. (2009). Gender, Race and Limiting the Constitutional Privilege of Religion as a Haven for
Bias: The Bridge Back to the Twentieth Century. Women's Rights Law Reporter, p. 30.
140. ^ Sandoval, Alonso De. (2008). Treatise on Slavery: Selections from De instauranda Aethiopum salute.
Indianapolis: Hackett Publishing Company, Inc. pp. 17, 20
141. ^ Bay, M. (2008). Polygenesis Versus Monogenesis In Black and White. In J. H. Moore (Ed.), Encyclopedia
of Race and Racism (Vol. 1, pp. 9093). Detroit: Macmillan Reference:91
142. ^ Baum, B. (2006). The Rise and Fall of the Caucasian Race: A Political History of Racial Identity. New
York: New York University Press, ISBN 0-8147-9892-6 p. 35
143. ^ Skinner, D (2006). "Racialized Futures: Biologism and the Changing Politics of Identity". Social Studies of
Science 36(3): 459488. doi:10.1177/0306312706054859.JSTOR 25474453.
144. ^ Jensen, E. M. (1991). The Good Old Cause': The Ratification of the Constitution and Bill of Rights in
South Carolina. In R. J. Haws (Ed.), The South's Role in the Creation of the Bill of Rights. Jackson:
University Press of Mississippi.
145. ^ Following a bitter debate over the importation of slaves from abroad, Congress was denied the authority
to prohibit the slave trade until 1808. The rendition of escaped slaves was also a priority for southerners.
Accordingly, the fugitive slave clause declared that persons held to service or labor under state law "shall
be delivered up on Claim of the Party to whom such Service or Labour may be due." (Ely, 2008:46)
146. ^ Wiecek, W. M. (1977). The Sources of Antislavery Constitutionalism in America, 17601848. New York:
Cornell University Press:63
147. ^ Tom Bethell "Private Property" Hamowy, Kuznicki & Steelman 2008, pp. 393
148. ^ Digital History. Digitalhistory.uh.edu. Retrieved on 2010-09-02.
149. ^
a

b
Davies 2007, p. 20
150. ^ "Property is something we must collectively define and construct. It is not given to us whole; it does not
emerge fully formed like Athena from Zeus's head. It is closer to a piece of music that unfolds over time.
Like music, property gets its sense of stability from the ongoing creation and resolution of various forms of
tension. The tensions that inform property are the tensions inherent in social relations. The solutions to the
problems of property conflicts lie in understanding the connection between property and human
relationships. Relationships sometimes form stable patterns, but they are also ongoing and constantly
renegotiated. cultural norms. It is argued that there is no simple definition of property that can be posited
without making controversial value judgments about how to choose between conflicting interests"Singer
2000, p. 13
151. ^ Singer 2000, p. 9
152. ^ Cohen, M. R. (1927). Property and Sovereignty. Cornell Law Quarterly, 13, 830. Cohen commenting on
the power dimension of property noted, "we must not overlook the actual fact that dominion over things is
also imperium over our fellow human beings" p. 13
153. ^ Rose 1994, p. 14
154. ^ "'Property' has no essential character, but is rather a highly exible set of rights and responsibilities which
congeal in different ways in different contexts" Davies 2007, p. 20
155. ^ Singer 2000, p. 8
156. ^ Cooter, R. and T. Ulen (1988). Law and Economics. New York, Harper Collins.
157. ^ Honore, A. M. (1961). Ownership. In A. G. Guest (Ed.), Oxford Essays in Jurisprudence. London: Oxford
University Press.; Becker, L. (1980). The Moral Basis of Property Rights In J. Pennock & J. Chapman
(Eds.), Property. New York: New York University Press..
158. ^ However, some scholars often use the terms ownership, property and property rights interchangeably,
while others define ownership (or property) as a set of specific rights each attached to the vast array of uses
accessible by the owner. Ownership has thus been interpreted as a form of aggregation of such social
relationsa bundle of rights over the use of scarce resources . Alchian, A. A. (1965). Some Economics of
Property Rights. Il Politico, 30, 816829
159. ^ Epstein, R. A. (1997). "A Clear View of the Cathedral: The Dominance of Property Rules". Yale Law
Journal 106 (7): 20912107. doi:10.2307/797162. JSTOR 797162. "Bundle of rights is often interpreted as
'full control' over the property by the owner"
160. ^ Merrill, T. W., & Smith, H. E. (2001). "What Happened to Property in Law and Economics?". Yale Law
Journal 111(2): 357398. doi:10.2307/797592. JSTOR 797592.
161. ^ Property has been conceptualized as absolute ownership with full control over the owned property without
being accountable to anyone else Singer 2000, p. 29.
162. ^ Demsetz, H. (1988). A Framework for the Study of Ownership. In H. Demsetz (Ed.), Ownership, Control,
and the Firm (Vol. I, pp. 1227). Oxford: Blackwell. Further, it is held, the ownership goes beyond what is
describable. Demsetz claims that the notion of "full private ownership" over assets is "vague", and "[i]n one
sense, it must always remain so, for there is an infinity of potential rights of actions that can be owned [].
It is impossible to describe the complete set of rights that are potentially ownable.
163. ^ Rose 1996, pp. 329365 Property as the Keystone Right? Notre Dame Law Review 71
164. ^ "Property itself is fragilemuch more so than one would think from its sheer persistence. A central
feature of this fragility is this: property entails the cooperation of others. You cannot have property all alone.
Even the rule of First Possession, seemingly so quintessentially individualistic, depends on the recognition
and acquiescence of others; they must know what you are claiming, and tacitly agree to let you hold it
even against their own interests. No trust, no property" Michelman, F. I. (1982). Ethics, Economics, and
the Law of Property. In J. R. Pennock & J. W. Chapman (Eds.), Nomos: Ethics, Economics, and the Law
(Vol. 24, pp. 340). New York: New York University Press.
165. ^ Menon observes, "Atomy, in short, is selfishness and free fulfillment of sovereign self at the cost of the
other. Atomy is reified as if it were autonomy within the social construction of the mythology of individuality".
p. 15 Menon, Madhu (2008). Suicide as unfreedom and vice versa. Norderstedt: GRIN Verlag ISBN 3-640-
18334-7
166. ^ Gray, Kevin (2009). "Property in Thin Air". The Cambridge Law Journal 50 (2):
252.doi:10.1017/S0008197300080508.
167. ^ Penner, J. E. (1997). The Idea of Property in Law. Oxford: Clarendon Press ISBN 0-19-826029-6 In
explaining the identity crisis of 'property' Penner wrote, "'You see', property will say, 'now I am not even my
own idea. I'm just a bundle of other concepts, a mere chimera of an entity. I'm just a quivering, wavering,
normative phantasm, without any home, without anything to call my own but an album full of fading and
tattered images of vitality and consequence and meaning. I'm depressed." p. 1
168. ^ Any space may be subject to plural meanings or appropriations which do not necessarily come into
conflict: pastoralists and Indigenous people may have quite different understandings of rural landscapes
reflected in different types of property interests, which canideallycoexist legally. A nominally open
public space may have 'private' or limited meanings imposed upon itfor instance religious meanings
(Urban spaces such as privately owned but publicly accessible shopping malls are increasingly of a 'quasi'-
public nature. At the same time, intrusions of public norms into personal proprietary spaces through, for
instance, zoning, heritage, and environmental regulations, militate against seeing 'private' property as
entirely private. Social transitions which transgress neat liberal distinctions put the theory under strain in key
points: where the owners of a quasi-public space like a shopping mall try to enforce a dress code or
standards of behaviour, private proprietorial power intrudes into the public sphere Davies 2007, p. 11
169. ^ AJ van der Walt notes, "forced removals and the restrictions upon free movement and economic activity
that accompanied state-enforced racial segregation, helped to secure white privilege while at the same time
politically and economically marginalising millions of black South Africans. Walt, AJ. (2009). Property in the
Margins. Oxford: Hart Publishing, ISBN 1-84113-963-7 p. 2
170. ^ Fischbach, M. R. (2003). Records of Dispossession: Palestinian Refugee Property and the Arab-Israeli
Conict. New York: Columbia University Press ISBN 0-231-12978-5. In this book Fischbach discusses on
forceful dispossession of Palestinian property by Israel
171. ^ Robertson observes, "In this country and, to a great extent, in other former British colonies, the legal rule
justifying claims to indigenous lands discovered by Europeans traces to the 1823 decision of the Supreme
Court of the United States in Johnson v. M'Intosh. Johnson contained the "discovery doctrine, which
answered the question: What rights did Europeans acquire, and indigenous peoples lose, upon the
discovery of the New World? The answer, according to the Court, was ownership of all discovered lands.
Discovery converted the indigenous owners of discovered lands into tenants on those lands. The underlying
title belonged to the discovering sovereign. The indigenous occupants were free to sell their "lease," but
only to the landlord, and they were subject to eviction at any time. More than 180 years later, the discovery
doctrine is still the law". Robertson 2005, pp. ixx
172. ^ Sax, J. L. (1971). "Takings, Private Property and Public Rights". Yale Law Journal (see pp. 149,
152) 81 (2): 149186. doi:10.2307/795134. JSTOR 795134.
173. ^ Singer 2000, p. 6
174. ^ Hohfeld, W. (1913). "Some Fundamental Legal Conceptions as Applied in Judicial Reasoning I". Yale Law
Journal 23 (1): 1659. doi:10.2307/785533.JSTOR 785533.
175. ^ Hohfeld, W. (1917). "Some Fundamental Legal Conceptions as Applied in Judicial Reasoning II". Yale
Law Journal 26 (8): 710770. doi:10.2307/786270.JSTOR 786270.
176. ^ Miunzer, S. R. (1990). A theory of property. Cambridge: Cambridge University Press, p. 17
177. ^ Bryan, B. (2000). Property as Ontology: on Aboriginal and English Understandings of Property. Canadian
Journal of Law and Jurisprudence, 13, 331. In this article Bradley Bryan claimed that property is about
much more than a set of legal relations: it is 'an expression of social relationships because it organizes
people with respect to each other and their material environment' p. 4
178. ^ Arendt, H. (1958). The Human Condition. Chicago: University of Chicago Press, p. 7
179. ^ Singer 2000, p. 16
180. ^ "The legal realists understood property rights as relationships only in the formal sense. They
acknowledged that rights impose duties on others and that liberties impose vulnerabilities on those affected
by the exercise of those liberties. In deciding whether those duties and those vulnerabilities were fair, they
suggested that lawmakers balance the interests of those harmed by entitlements against those who benefit
from them. This balancing solution did not take seriously the idea that legal rules both respond to and shape
the contours of social relations. They did not, in other words, take the character and structure of social
relations as an important independent factor in choosing the rules that govern market life. Economists may
similarly fail to give sufficient attention to the moral and customary underpinnings of market societies. The
idea of balancing interests is a useful one, but it does not quite get at what is at stake in constructing
property law. What is at stake is a vision of social life" Singer 2000, p. 11 Singer further states, "Problems
emerge when abstract property concepts meet the disputes over property that arise between people in the
real world. The ownership model fails to acknowledge the substantial limitations on property rights that are
necessary to protect the interests of both owners and nonowners harmed by the exercise of those rights.
Conflicts among owners are quite prevalent. In some cases one owner's exercise of her lawful property
rights interferes with other owners' rights in their own property. We also need to restrict property rights in
situations where they impinge on nonproperty rights we hold as dearly". (p. 31)
181. ^ Boldrin & Levine 2008, p. 10
182. ^ Drahos and Braithwaite write, "When in 1994 we interviewed a former US trade negotiator, he remarked
that 'less than 50 individuals' were responsible for TRIPS. Less than 50 individuals had managed to
globalize a set of regulatory norms for the conduct of all those doing business or aspiring to do business in
the information age"Drahos & Braithwaite 2002, p. 73
183. ^
a

b
Steelman, A. Intellectual Property.Hamowy, Kuznicki & Steelman 2008, pp. 249250
184. ^ We shall see that when monopoly over ideas is absent, competition is fierceand that, as a result,
innovation and creativity thrive. Whatever a world without patents and copyrights would be like, it would not
be a world devoid of great new music and beneficial new drugs." They substantiate their argument by
showing instances of key innovation in software industry prior to 1981, before the advent of patent
protection The best evidence that copyright and patents are not needed and that competition leads to
thriving innovation in the software industry is the fact that there is a thriving and innovative portion of the
industry that has voluntarily relinquished its intellectual monopolyboth copyright and patent. Boldrin &
Levine 2008, pp. 10, 1617
185. ^ Vlimki, M. (2005). The Rise of Open Source Licensing: A Challenge to the Use of Intellectual Property
in the Software Industry. Helsinki: Turre Publishing ISBN 952-91-8769-6.
186. ^ Hamowy, Kuznicki & Steelman 2008, p. 249
187. ^ The South African Medicines and Related Substances Control Amendment Bill and TRIPS.
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188. ^ Orsi, F., Camara, M., & Coriat, B. (2006). AIDS, TRIPS and 'TRIPS plus': the case for developing and less
developed countries. Andersen 2006, pp. 70108
189. ^ The authors of the book "Information Feudalism" state: Generally speaking, when a large pharmaceutical
company develops a therapeutic compound, it surrounds that compound with a wall of intellectual property
protection. Patents are taken out on all aspects of the compound, including the compound itself, dosage
methods and processes of making it. Some knowledge is held back and protected under trade-secret law,
brand name identity is protected through trade mark law and a lot of written information is protected by
copyright. The whole point of building this wall is to ensure that protection lasts well beyond the term of any
single patent and keeps cheaper generic manufacturers out of the market for as long as possible. For
people in developing countries living on one or two dollars a day, the price of anti-retroviral therapies
represented a king's ransom. In some countries such as South Africa, some treatments were in fact more
expensive. As an aside we might note that the phenomenon of patented medicines being more expensive in
developing countries is not unusual. The logic of patent monopoly is to have a safe and secure distribution
system aimed at selling smaller numbers of expensive medicines to a wealthy class, rather than trying to
distribute large numbers of cheap medicines at a few cents a day to the many poor. When large
pharmaceutical companies speak about 'growing the market' in developing countries, it is the wealthy
segment of the market they have in mind" Drahos & Braithwaite 2002, p. 6
190. ^ Andersen & 2006 pp109147
191. ^ Roderick Long in Hamowy, Kuznicki & Steelman 2008, pp. 249250
192. ^ Machlup, F. (1958). An Economic Review of the Patent System. Washington D.C.: US Government
Printing Office, p. 80. Expressing similar concern Fritz Machlup wrote, "It would be irresponsible, on the
basis of our present knowledge of its economic consequences, to recommend instituting [a patent system]."
193. ^ Proudhon (1847), Chapter VI in The Philosophy of Poverty.
194. ^ The Sherman Act of 1890, was passed in America to stop rampant cartelization and monopolization in the
American economy, followed by the Clayton Act of 1914, Federal Trade Commission Act of 1914,[1] and
the Anti-Price Discrimination Act of 1936. In recent years, "antitrust" enforcement is alleged to have reduced
competition. E.g., "antitrust is anticompetitive" writes Boudreaux Antitrust.Hamowy, Kuznicki & Steelman
2008, pp. 16
195. ^ Mindeli, L. E.; Pipiya, L. K. (2007). "Conceptual aspects of formation of a knowledge-based
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197. ^ Kinsella, S. (2008). Against Intellectual Property. Alabama: Ludwig von Mises Institute. Kinsella writes,
"Ideas are not naturally scarce. However, by recognizing a right in an ideal object, one creates scarcity
where none existed before" p. 33
198. ^ Andersen 2006, p. 125
199. ^ David, P. (2001, 2223 January). Will Building 'Good Fences' Really Make 'Good Neighbours'. Paper
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201. ^ Andersen 2006, p. 109 "Capturing value from intellectual capital and knowledge-based assets has
become the new mantra. The battles are not for control of raw materials, but for the control of the most
dynamic strategic asset, namely 'productive knowledge'"
202. ^ Macmillan, F. (2006). Public interest and the public domain in an era of corporate dominance. Andersen
2006, pp. 4669
203. ^ The spatial-distantiation is globalization and the temporal distantiation is futurization. Futurization futurizes
the present and globalization globalizes the local. Combined, they drive away politics out of place and time,
reducing life into bare life. Moreover, the stretching of time and space as it has brought global to the local it
has also brought the future to the present. In the earlier times it was the past that directed the present in the
form of tradition and culture. With the shift in spatio-temporality, it is no longer the past, but the future that
pulls human destiny, of course in increasing degrees. The social-time, if left in its present course of direction
and acceleration it would incessantly outdate not only the people living in the present but also destine those
yet to be born. The velocity of movement towards the future through speculative investment by the power
elite, if unconstrained, indeed would invert the social time and space into irredeemable black hole and
refuse politics for everyone not yet born. Menon 2008 Suicide as unfreedom and vice versa
204. ^ Drahos & Braithwaite 2002
205. ^ Andersen 2006, pp. 63
206. ^ Enderle, Georges (1999). International Business Ethics.University of Notre Dame Press. p. 1. ISBN 0-
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207. ^ George, Richard de (1999). Business Ethics. ISBN 0-412-46080-7.
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209. ^ Friedman, M. (1970). "The Social Responsibility of Business is to Increase Profit", The New York Times
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210. ^
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216. ^ Coffee, J. C. J. (1981). ""No Soul to Damn: No Body to Kick": An Unscandalized Inquiry into the Problem
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218. ^ Jones, Parker & et al. 2005, pp. 38
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221. ^ http://www.ibdinstitute.asia
222. ^ Jonathan Chan Confucian Business Ethics and the Nature of Business Decisions
223. ^ Matthew 7: 12
224. ^ Mcdaniel, Charles (2011). ""Theology of the "Real Economy"". Journal of religion and business ethics 2.
225. ^ Christoph Luetge (ed.): Handbook of the Philosophical Foundations of Business Ethics. Heidelberg/New
York: Springer 2013, ISBN 978-9400714953.