Corporations wield power in today’s economies, and political theories of the corporation argue about the legitimacy conditions of corporate power. This paper argues in favour of a double-fiduciary theory for corporations. Based on a concession theory of markets, it sees all markets as authorized by states (in the name of society), for the purpose of creating economic value, or wealth. Hence corporations, as much as non-incorporated firms, have a fiduciary duty to the state/society to create wealth, in the (...) competitive structure of the market. However, their pursuit of wealth often creates unbalanced relations of power between corporations and their stakeholders, which can at some point be classified as instances of domination. Therefore, corporations need to be subjected to a second fiduciary duty, i.e. not to dominate others in the economy. This duty is also, in the final instance, owed to the state/society. In an era when everyone can incorporate their business, states/societies can be interpreted as having, through corporate law, mandated shareholders as ‘proximate beneficiaries’, to incentivize corporations to create wealth. Now states/societies need to think about how to prevent corporations from dominating others. New mechanisms of accountability towards stakeholders and/or citizens as proximate beneficiaries are needed. Only in this way can corporations be effectively held to account for both of the fiduciary duties which characterize their normative status. (shrink)

This thoughtful new abridgment is enriched by the brilliant commentary which accompanies it. In it, Laurence Dickey argues that the _Wealth of Nations_ contains--and conceals--a great deal of how Smith actually thought a commercial society works. Guided by his conviction that the so-called Adam Smith Problem--the relationship between ethics and economics in Smith's thinking--is a core element in the argument of the work itself, Dickey's commentary focuses on the devices Smith uses to ground his economics in broadly ethical and social (...) categories. An unparalleled guide to an often difficult and perplexing work. (shrink)

This theoretical paper is offered in the spirit of advancing the debate on the socioemotional wealth construct and its impact on how family firms conceptualize and practise corporate social responsibility. The study builds on Kellermanns et al.’s :1175–1182, 2012) claim that the SEW dimensions can be positively and negatively valenced as well as makes a distinction between the selective and instrumental approach to CSR and the holistic and normative one. Drawing on these considerations, it provides a theoretical underpinning in (...) favour of the view that SEW has ambivalent nature and therefore can produce detrimental outcomes for stakeholders of family companies. In this way, the study challenges the implicit assumption prevalent in the literature that SEW is “a prosocial and positive stimulus”. Crucially, it expands on the SEW construct by arguing that, given its ambivalent nature, SEW, as such, is at odds with the “strategic, whole-business view of responsibility”. Consequently, it posits that family firms—because of their concern with SEW—may be more likely to adopt the instrumental and selective rather than strategic and normative approach. Hence, it also makes the case for regarding the latter as a reference point to investigate the family company’s attitude towards social responsibility. It concludes by summarising the argument and offering future research avenues. (shrink)

Dozens of countries have established Sovereign Wealth Funds (SWFs) in the last decade or so, in the majority of cases employing those funds to manage the large revenues gained from selling resources such as oil and gas on a tide of rapidly rising commodity prices. These funds have raised a series of ethical questions, including just how the money contained in such funds should eventually be spent. This article engages with that question, and specifically seeks to connect debates on (...) SWFs with debates on global justice. Just how good are national claims to the great wealth contained in SWFs in the first place? Using the example of Norway's very large SWF – derived from selling North-Sea petroleum – I show that national claims are at least sometimes very weak, with the implication that the wealth in many such funds is ripe for redistribution in the interests of global justice. I conclude by offering some guidance for how the money contained in such funds could best be spent, with the goal of advancing global justice. (shrink)

Is political equality viable given the unequal private property holdings characteristic of a capitalist economy? This book places the wealth-politics nexus at the centre of scholarly analysis. Traditional theories of democracy and property have often ignored the ways in which the rich attempt to convert their wealth into political power, operating on the implicit assumption that politics is isolated from economic forces. This book brings the moral and political links between wealth and power into clear focus. The (...) chapters are divided into three thematic sections. Part I analyses wealth and politics from the perspective of various political traditions, such as liberalism, republicanism, anarchism, and Marxism. Part II addresses the economic sphere, and looks at the political influence of corporations, philanthropists and commons-based organizations. Finally, Part III turns to the political sphere and looks at the role of political parties and constitutions, and phenomena such as corruption and lobbying. Wealth and Power: Philosophical Perspectives will be of interest to scholars and advanced students working in political philosophy, political science, economics, and law. (shrink)

Wealth and Virtue reassesses the remarkable contribution of the Scottish Enlightenment to the formation of modern economics and to theories of capitalism. Its unique range indicates the scope of the Scottish intellectual achievement of the eighteenth century and explores the process by which the boundaries between economic thought, jurisprudence, moral philosophy and theoretical history came to be established. Dealing not only with major figures like Hume and Smith, there are also studies of lesser known thinkers like Andrew Fletcher, Gershom (...) Carmichael, Lord Kames and John Millar as well as of Locke in the light of eighteenth century social theory, the intellectual culture of the University of Edinburgh in the middle of the eighteenth century and of the performance of the Scottish economy on the eve of the publication of the Wealth of Nations. While the scholarly emphasis is on the rigorous historical reconstruction of both theory and context, Wealth and Virtue directly addresses itself to modern political theorists and economists and throws light on a number of major focal points of controversy in legal and political philosophy. (shrink)

Daniel Halliday examines the morality of the right to bequeath or transfer wealth, and argues that inheritance is unjust to the extent that it enhances the intergenerational replication of inequality, concentrating opportunities in certain groups. He presents an egalitarian case for imposition of a significant inheritance tax.

The relationship between attitudes towards wealth and the quest for salvation in Theravada Buddhism is examined by authors from various disciplines. The main purpose of the book is to see what light Buddhism, often thought of as an otherworldly religion, can shed on mundane problems.

I perform an economic and ethical analysis on wealth and income inequality. Economists have performed many statistical studies that reveal a number of, often contradictory, findings in connection with the distribution of wealth and income. Hence, the statistical findings leave us with no better knowledge of the effects that inequality has on economic progress. At the same time, the existing theoretical results have not provided us with a definitive answer concerning the effects of inequality on progress. By gaining (...) knowledge of the nature of inequality, and bringing basic economic principles to bear on the subject, we can come to an understanding of what the causal relationship is between inequality and economic progress. Furthermore, I apply a new theory of ethics – rational egoism – to assess economic inequality. I show that, in the right context, economic inequality is both economically and morally desirable. (shrink)

In the last 30 years, China has experienced an astounding economic development that calls for a differentiated understanding of this complex process of wealth creation. In the first section of this article, I present a new concept of wealth creation that goes beyond making money, maximizing profit and adding value and serves as a framework to address the article's main topic.In the second section, I investigate in what ways and to what extent this new concept might apply to (...) China's economic reform and development, particularly in the 1980s and 1990s. In the third section, I attempt to draw a couple of lessons for development ethics in general. (shrink)

This article examines John Stuart Mill’s influential proposal of how to tax wealth transfers. According to Mill, every person should be free to bequeath but not to receive bequest. Mill proposed an upper limit on how much each person could receive from wealth transfers. We discuss three objections against this proposal. The nonseparability objection holds that it is not possible to separate the freedom to give from the freedom to receive. The objection from private property holds that private (...) property includes an unlimited right to dispose of one’s assets and that this right is violated under Mill’s scheme. The objection from incentives holds that Mill’s scheme would have negative effects on people’s willingness to work and save. We argue that these objections can be met and that taxing bequeathed wealth according to Mill’s scheme is more just and more efficient compared to systems that rely less on wealth transfer taxation. (shrink)

The Wealth of Ideas, first published in 2005, traces the history of economic thought, from its prehistory to the present day. In this eloquently written, scientifically rigorous and well documented book, chapters on William Petty, Adam Smith, David Ricardo, Karl Marx, William Stanley Jevons, Carl Menger, Léon Walras, Alfred Marshall, John Maynard Keynes, Joseph Schumpeter and Piero Sraffa alternate with chapters on other important figures and on debates of the period. Economic thought is seen as developing between two opposite (...) poles: a subjective one, based on the ideas of scarcity and utility, and an objective one based on the notions of physical costs and surplus. Professor Roncaglia focuses on the different views of the economy and society and on their evolution over time and critically evaluates the foundations of the scarcity-utility approach in comparison with the Classical/Keynesian approach. (shrink)

In this essay we argue against preventing people from amassing extreme wealth via increased taxation. The first argument in favor of such a proposal, recently advanced by Ingrid Robeyns (2018), states that billionaires’ resources would be better spent addressing morally important goals such as meeting disadvantaged people’s needs and solving collective action problems. In response to this claim, we argue that billionaires are typically in a better position to benefit the poor and to solve collective action problems than public (...) officials. The second argument in favor of preventing extreme wealth accumulation, advanced by Robeyns and Robert Reich (2018), states that billionaires have an inappropriate amount of influence in public life, which undermines political equality. We argue that corporate leaders tend to be more accountable to their fellow citizens than public officials. We then consider and criticize the objection that billionaires’ success is typically a result of public investment, which entitles public officials to enforce taxes that demand a return on the public investment. (shrink)

Many scholars and managers endorse the idea that the primary purpose of the firm is to make money for its owners. This shareholder wealth maximization objective is justified on the grounds that it maximizes social welfare. In this article, the first of a two-part set, we argue that, although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our current state of economic and social affairs. To make our case, we employ (...) a utilitarian moral standard and examine the apparent logical sequence behind the link between shareholder wealth maximization and social welfare. Upon close empirical and conceptual scrutiny, we find that utilitarian criteria do not support the shareholder model; that is, shareholder wealth maximization is only weakly linked to social welfare maximization. In view of the dubious validity of this sequential argument, we outline some of the features of a superior corporate objective—a variant of normative stakeholder theory. In the second article, we will advance and defend our preferred alternative and then discuss some institutional arrangements under which it could be implemented. (shrink)

The moral dimensions of how we conduct business affect all of our lives in ways big and small, from the prevention of environmental devastation to the policing of unfair trading practices, from arguments over minimum wage rates to those over how government contracts are handed out. Yet for as deep and complex a field as business ethics is, it has remained relatively isolated from the larger, global history of moral philosophy. This book aims to bridge that gap, reaching deep into (...) the past and traveling the globe to reinvigorate and deepen the basis of business ethics. Spanning the history of western philosophy as well as looking toward classical Chinese thought and medieval Islamic philosophy, this volume provides business ethicists a unified source of clear, accurate, and compelling accounts of how the ideas of foundational thinkers—from Aristotle to Friedrich Hayek to Amartya Sen—relate to wealth, commerce, and markets. The essays illuminate perspectives that have often been ignored or forgotten, informing discussion in fresh and often unexpected ways. In doing so, the authors not only throw into relief common misunderstandings and misappropriations often endemic to business ethics but also set forth rich moments of contention as well as novel ways of approaching complex ethical problems. Ultimately, this volume provides a bedrock of moral thought that will move business ethics beyond the ever-changing opinions of headline-driven debate. (shrink)

This article examines the principle of wealth maximization, as developed by Richard Posner, seeking to dispel misunderstandings, address criticisms, and contextualize its role in legal and political philosophy. The paper first delineates the distinction between the concepts of experienced utility and decision utility, elucidating how the latter is fundamental to the principle of wealth maximization. Next, the authors engage with criticisms of wealth maximization, including issues relating to basic needs, individual rights, and distributive justice. The paper contends (...) that these aspects of ‘justice’ can be understood as emergent properties of efficiency. The article then presents affirmative arguments for wealth maximization by connecting it to social contract theory and demonstrating its consistency with the tenets of liberal democracy. By analyzing the concept from both Hobbesian and Rawlsian perspectives, the paper illustrates the merits of the wealth maximization principle in relation to social contract theory. In conclusion, the article argues that wealth maximization serves as a robust and justifiable framework for legal and philosophical analysis, ultimately offering a better fit with the principles of liberal democracy than competing normative theories. (shrink)

This chapter interrogates the intersections between wealth, violence, and justice by considering two very different cases: refugees who have had their wealth taken from them, and political activists who are considering using Robin-Hood-style tactics to protest economic injustice. Ordinarily, the involuntary loss of wealth that refugees suffer, while it is viewed as an injustice, is not considered a violent injustice. However, when the involuntary redistribution of wealth is brought up in the context of resolving long-standing economic (...) injustices, opponents cry out that such redistribution would be, not only unjust, but an act of violence. This raises an interesting question: how should we view the involuntary loss, or redistribution, of wealth? Disregarding for the moment whether such involuntary losses of wealth are justified or unjustified—which might well depend on the circumstances and context—it is worth considering whether they are instances of violence. If they are, then refugees have suffered more violence than we normally recognize. If they are not, then Robin-Hood-style tactics (absent the bows and arrows) may be allowed for those who wish to engage in non-violent resistance against economic injustice in all its forms. (shrink)

In this paper I aim to provide a novel account of the Democratic Argument for limitarianism. I first claim that the standard version of this argument is questionable due to its reliance on a problematic central premise, namely that excessive wealth damages democracy because of its detrimental impact on political equality. Subsequently, I relocate the fundamental democratic worry in regard to excessive wealth in the process of backsliding, and more specifically in the relation between excessive wealth and (...) political polarization. I then offer a new account of the Democratic Argument for limitarianism which envisages wealth capping as instrumental for democratic resilience, but I maintain that the argument is not unambiguously successful. (shrink)

The powers available to criminal enforcement authorities to investigate and seize the UK-based proceeds of overseas grand corruption are piecemeal in nature and collectively under-researched. In considering how the UK uses its laws to address the proceeds of overseas political corruption being laundered within its territory, this monograph examines the broader anti-corruption enforcement architecture of a ‘destination’ country for the proceeds of grand corruption. This volume uses the introduction and operation of the politically exposed person-specific unexplained wealth order as (...) a lens through which to assess the UK’s anti-corruption regime. It provides an in-depth critical examination of the pitfalls, the benefits, and the efficacy of the options available to countries acting as haven states for corruptly acquired wealth in deterring the laundering of ‘dirty money’ in their states and interrogates the political motivations underpinning the introduction of those measures. It considers the relative advantages and disadvantages of various legal routes to recovering and, where appropriate, to returning misappropriated assets to states of origin. This work provides an essential resource with which to inform current policy and future reform of anti-corruption regimes both in the UK and in other states harbouring corruptly acquired assets originating overseas. (shrink)

This paper discusses the possibility of wealth adjustment through a credit network. The discussed credit network in this paper is a kind of loaning with no interest rate (its value is zero). It explains the influence of existence or inexistence of a cooperation originated from the credit network on wealth distribution and adjustment in an artificial society. To show how the wealth may distribute, environment agents in terms of their obtained wealth have been classified into ten (...) wealth categories; thus, the share of each category in terms of population has been determined. In addition, the survival of population in the environment has been studied. Findings and results show more balanced distribution of agents among the categories of wealth and higher survival of the population in the existence of the credit network. More over, the curve of population has fewer fluctuations. In other words, the population is more stable due to the ability of credit network in making more survival and stability in the population of environment in periods of time by providing the possibility of cooperation and wealth better distribution. (shrink)

In this book, Kate Ward addresses the issue of inequality from the perspective of Christian virtue ethics. Her unique contribution is to argue that moral luck, our individual life circumstances, affects one's ability to pursue virtue. She argues that economic status functions as moral luck and impedes the ability of both the wealthy and the impoverished to pursue virtues such as prudence, justice, and temperance. The book presents social science evidence that inequality reduces empathy for others' suffering, and increases violence, (...) fear, and the desire to punish others. For the wealthy, inequality creates "hyperagency" - abundant freedom, power, and choice beyond that enjoyed by other members of society. For the poor, scarcity of time, money, and other important goods can also impair their ability to pursue virtue. Having established the theological harm caused by inequality, Ward then makes the argument that both individual Christians and Christian communities have obligations to address the impact of inequality. As individuals, Christians should pursue what Ward calls encounter, conversion, and contentment. Encounter means genuinely reaching out to the less fortunate and spending enough time to get to know individuals as human beings. For Ward, conversion means informing oneself about the realities of poverty and inequality. Contentment means being satisfied with one's position and not striving for more material wealth. Christian communities, in Ward's view, have obligations to pursue political action, tithing, and aid, and to foster encounters in parishes and educational settings. (shrink)

The primary objective of this article is to develop a framework for analyzing the ethical foundations and implications of shareholder wealth maximization (SWM). Distinctions between SWM and the more widely examined construct of profit maximization are identified, the most significant being the central role played in SWM by the market mechanism for pricing the corporation''s securities. It is argued that empirical tests concerned with evaluating the ethical implications of SWM will almost surely involve a joint hypothesis. A number of (...) recent empirical studies aimed at testing hypotheses with explicit ethical content are reviewed. (shrink)

Responsible investment is increasingly prevalent, and both financial and moral concerns can drive such investment. In this article, we investigate how responsible investors of different wealth weigh financial and moral arguments. Prior research on different factors that may codetermine responsible investment behavior yield competing predictions about the influence of personal wealth on investment. We conduct a large-scale natural field experiment on responsible investment, wherein we treat investors with financial, moral, and no arguments. We find that there is a (...) statistically and economically significant difference in responsiveness to financial and moral arguments between investors of different wealth. Specifically, financial arguments are more effective than are moral arguments for high wealth investors but not for low wealth investors, and the effect is particularly high for the wealthiest investors. The findings hold for several different measures of wealth. Our findings contribute to the understanding of the moderating effect of wealth on responsible investment choice. Furthermore, these insights may enable more fine-tuned strategies to stimulate responsible investment among different individual investor segments. (shrink)

How should we distinguish between ethical and unethical ways of pursuing profit in a market? The market failures approach (MFA) to business ethics purports to provide an answer to this question. I argue that it fails to do so. The source of this failure is the MFA’s reliance on Pareto efficiency as a core ethical principle. Many ethically “preferred” tactics for seeking profit cannot be justified by appeal to Pareto efficiency. One important reason for this is that Pareto efficiency, as (...) understood by the theory of welfare economics upon which the MFA relies, assumes a static conception of efficiency. This is a problem because many ethically “preferred” tactics can only be justified by appeal to dynamic efficiency considerations. I argue that, instead of Pareto efficiency, we should look to the value of wealth creation to understand the ethical constraints on how market actors may pursue profit. (shrink)

Ethics, Wealth and Salvation. A Study in Buddhist Social Ethics. Ed. Russell F. Sizemore and Donald K. Swearer. University of South Carolina Press, Columbia 1990. xv, 311 pp. $42.50. Pbk repr. 1993, $18.95.

Wealth distribution based on classic sugarscape model leads to a population increase and the Gini coefficient decrease when cooperation and communication parameters are taken into account. In another study, this model was developed by implying a receipt of one-fifth of the assets of the population and derived utilization for poor people. The results showed a relation between mortality decrease, population increase, and Gini coefficient decrease (equality increase). In a synergic process, the wealth adjustment based on sugarscape model underwent (...) some experiments by implying communication and cooperation, and the mechanism of receiving and utilizing the assets. The results show that the population increase and the Gini coefficient decrease play an important role in wealth adjustment. (shrink)

I spell out a distinctive account of what is wrong with inequalities of wealth: they constitute asymmetries of power. Two ideas lie behind this view. The first is that asymmetries of power constitute inegalitarian relationships. Think of the relationship of king to subject or master to slave: these are in part constituted by asymmetric power. The second is that wealth gives one power over people. When you have a lot of money, you can pay people to do what (...) you want, and that gives you power over them. Inequalities of wealth, by constituting asymmetries of power, thus constitute objectionably inegalitarian relationships. (shrink)

Ensuring access to clean water is one of the most important development and health challenges of the twenty-first century. Given the manifold impacts of business activities on water resources, corporate water actions should be of central concern to business ethics researchers. Yet so far we know too little about whether business activities that impact on water resources are noticed or how corporate water actions are valued by a firm’s stakeholders, including by financial markets. In response, we conduct an event study (...) to investigate the shareholder wealth effect of reports of corporate water actions. We explore stock market reactions to water actions by S&P 500 firms from 2005 to 2017, showing that the market reacts positively to reports of responsible water actions and negatively to irresponsible actions. We further explain that these abnormal returns to water actions are associated with a firm’s past performance on ethical issues, arguing that the reputational effects from prior corporate social responsibility and irresponsibility influence market reactions. Our analysis provides evidence that there are diminishing marginal returns to responsible water actions for firms with records of past responsibility and an offsetting effect for those with past irresponsibility. Similarly, we demonstrate an insurance effect that limits punishment for irresponsible water actions for firms with responsible performance records and diminishing negative marginal returns for those already seen to be irresponsible. This study is the first to show that shareholders recognize market value in corporate water actions and are prepared to award or punish firms in stock markets based on their impacts on water. (shrink)

The few studies that address the economic dimensions of Spinoza’s political philosophy tend to emphasize his view of the ancient Hebrew polity at the time of the Bible as essentially egalitarian. We do not deny this important feature of Spinoza’s reconstruction of the ancient Hebrew state. However, in the current study, we would like to shed light on a key economic argument of Spinoza’s Theological Political Treatise that has been hardly discussed so far: Spinoza’s contention that international economic collaboration cannot (...) be pursued in a closed and xenophobic society, such as the ancient Hebrew state, under Spinoza’s reconstruction. In the first part of this study, we provide a general characterization of Spinoza’s reconstruction of the ancient Hebrew state and its unique virtues. In the second part, we discuss and evaluate Spinoza’s portrayal of the ancient Hebrew state as essentially xenophobic. In the third and final part, we suggest that Spinoza used his portrayal of the ancient Hebrew state as essentially xenophobic in order to motivate his Dutch contemporaries to abandon their fantasies of imitating this legendary polity. Spinoza’s argument was quite simple: in spite of the exceeding virtues of this state – and Spinoza does not hesitate to call it the ‘Kingdom of God’ – the ancient Hebrew state cannot, and should not, be imitated by a modern society that is keen on achieving wealth through international trade. To put things bluntly, Spinoza presents his compatriots with a stark choice: either you can re-establish the ancient Kingdom of God or you can enjoy the benefits of your unprecedented wealth achieved through international trade. (shrink)

Donald Winch completes the intellectual history of political economy begun in Riches and Poverty. A major theme addressed in both volumes is the 'bitter argument between economists and human beings' provoked by Britain's industrial revolution. Winch takes the argument from Mill's contributions to the 'condition-of-England' debate in 1848 through to the work on economic wellbeing of Alfred Marshall. The writings of major figures of the period are examined in a sequence of interlinked essays that ends with consideration of the twentieth-century (...) fate of the debate between utilitarians and romantics in the hands of Leavis, Williams and Thompson. Donald Winch is one of Britain's most distinguished historians of ideas, and Wealth and Life brings to fruition a long-standing interest in the history of those intellectual pursuits that have shaped the understanding of Britain as an industrial society, and continue to influence cultural responses to the moral questions posed by economic life. (shrink)

_An investigation into the foundations of democratic societies and the ongoing struggle over the power of concentrated wealth_ Much of our politics today, Paul Starr writes, is a struggle over entrenchment—efforts to bring about change in ways that opponents will find difficult to undo. That is why the stakes of contemporary politics are so high. In this wide‑ranging book, Starr examines how changes at the foundations of society become hard to reverse—yet sometimes are overturned. Overcoming aristocratic power was the formative (...) problem for eighteenth‑century revolutions. Overcoming slavery was the central problem for early American democracy. Controlling the power of concentrated wealth has been an ongoing struggle in the world’s capitalist democracies. The battles continue today in the troubled democracies of our time, with the rise of both oligarchy and populist nationalism and the danger that illiberal forces will entrench themselves in power. _Entrenchment_ raises fundamental questions about the origins of our institutions and urgent questions about the future. (shrink)

How do wealth managers understand and comply with the social norms embedded in banks’ codes of conduct (CoC), and how do they cope with ethical dilemmas? Do they have a tendency after the global financial crisis to prioritize banks’ financial security over clients’ interests? To answer these and related questions, we conduct a nonincentivized online survey with wealth management employees of the Swiss legal entity of a large multinational bank. We propose a method to estimate the comprehension and (...) the level of expected adherence to the CoC principles that we test with our sample. We further show that framing questions under the label of “Financial Security” increased response accuracy and that employees’ honesty helped guide their decision-making toward integrity in ethical dilemmas. Thus, in addition to validating a method for testing the level of CoC comprehension and the expected adherence to its principles, our study is among the first to show that in the wealth management business, honesty and social injunctive norms defined in the bank’s CoC reinforce one another. (shrink)

Commerce is not zero-sum. There are gains from trade. This insight grounded Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations. This issue heralds the 250th anniversary of its publication. We consider its context, including influences such as David Hume and especially Smith’s own The Theory of Moral Sentiments.

We examine the unique nature of agency problems within publicly traded family firms by investigating the earnings management decision of dominant family owners relative to non-family. To do so, we draw upon literature demonstrating that family owners are loss averse with respect to the family’s socioemotional wealth, or the affective endowment derived from firm ownership and control. Our theory and findings suggest that potential reputational consequences of earnings management lead family principals to engage in less of this practice relative (...) to non-family firms, and that founder family firms are less likely than non-founder family firms to use earnings management. Moreover, the family-firm effect varies with the firm size, the degree of CEO entrenchment, and the firm’s stock structure. We provide important insights regarding differences between family and non-family principals in the use of unethical accounting practices, thereby extending agency theory and advancing an underdeveloped research area. (shrink)

Care is at the heart of the Maori values system, which calls for humans to be kaitiaki, caretakers of the maun y the life-force, in each other and in nature. The relational Five Well-beings approach, based on four case studies of Maori businesses, demonstrates how business can create spiritual, cultural, social, environmental and economic well-being. A Well-beings approach entails praxis, which brings values and practice together with the purpose of consciously creating well-being and, in so doing, creates multi-dimensional wealth. (...) Underlying the Well-beings approach is an ethic of care and an intrinsic stakeholder view of business. (shrink)

I offer a reading of the two conceptions of the good found in Plato’s Protagoras: the popular conception—‘the many’s’ conception—and Socrates’ conception. I pay particular attention to the three kinds of goods Socrates introduces: (a) bodily pleasures like food, drink, and sex; (b) instrumental goods like wealth, health, or power; and (c) virtuous actions like courageously going to war. My reading revises existing views about these goods in two ways. First, I argue that the many are only ‘hedonists’ in (...) a very attenuated sense. They do not value goods of kind (b) simply as means to pleasures of kind (a); rather, they have fundamentally different attitudes to (a) and (b). Second, the hedonism that Socrates’ defends includes a distinction between kinds of pleasures: (a) bodily pleasures and (c) the pleasures of virtuous actions. This distinction between kinds of pleasures—some that do and some that do not exert the ‘power of appearance’—allows Socrates to address one of the central beliefs in the popular conception of akrasia, namely that it involves a special kind of unruly desire: non-rational appetites for pleasures like food, drink, or sex. Socrates replaces the motivational push of non-rational appetites with the epistemic pull of the appearance of immediate pleasures like food, drink, and sex. (shrink)

An examination of Wealth 160-69 sheds further light on the portrayal of adulterers (moichoi) in ancient Greek comedy and oratory. The moichos is routinely presented as undermining the financial fortunes of a household as well as its domestic harmony. On the Greek comic stage, and in the Athenian courtroom, the moichos is less a Don Juan figure than a treacherous intruder, intent on exploiting his seductive charms to the detriment of another male citizen’s household. Such an understanding of the (...) Greek moichos helps to shed light on figures such as the Eratosthenes of Lysias 1, the youthful lover in the concluding scenes of Wealth, and Apollodorus’ presentation of the former slave Phormion. It also yields further insights into popular attitudes toward women and marriage. (shrink)

This book explores sustainable wealth management and the challenges that arise for asset managers in times of ecological crises and climate change. It deals with portfolio engineering, combining risk and impact, transitioning from environmental, social, and governance (ESG) concepts to Sustainable Development Goals (SDG) concepts and the different role of the intermediaries and players in the financial markets. It provides researchers, scholars, academics and policy makers an interdisciplinary approach to redirecting capital towards sustainability.

Although trustworthiness has been described as a source of competitive advantage, its value extends to organizational governance and wealth creation. We identify the importance of the commitment—compliance continuum in the decision to trust and note that trustworthiness is a subjective perception viewed through each person's mediating lens. That lens and each person's interpretation of the social contract impact one's commitment to cooperate. We suggest five propositions that integrate trustworthiness, governance, and wealth creation.

This study examines the relationship between family control and young entrepreneurial firm’s bribing behavior around the globe. Relying on over 2,000 young firms from the World Bank Environment Survey, we find that family control helps to reduce a firm’s bribery behavior, but further investigation shows that this effect only exists in countries with weaker macro-governance environment. In countries with more established and transparent governance mechanism, family control does not seem to make any difference. We interpret our findings as the business (...) family’s preservation of socioemotional wealth. (shrink)

Smith emphasises the importance of sufficient capitalCapitals for economic prosperity, which is achieved through saving rather than consumption. He argues that both individual means and the prosperity of society as a whole arise from the accumulation and productive use of capitalCapitals, condemning prodigality and idle capitalCapitals as obstacles to economic growth. Smith extols thrift, drawing on Puritan valuesValues, and contrasts it with wasteful behaviour, which harms society. He critiques government mismanagement of finances, stressing that the economic competence and thriftiness of (...) individuals sustain the state. Smith also elaborates on the structure of wealth, distinguishing between immediate consumption, capitalCapitals for income generation, and non-consumed items.Smith’s macroeconomic perspective includes a detailed analysis of circulating capitalCapitals, which generates income only when it moves through various hands. He differentiates between productive and unproductive labourLabour, with the former increasing national wealth by creating durable goods. He critiques state intervention in capitalCapitals flows, advocating for economic freedom and natural investment courses.Smith’s nuanced examination of luxuryLuxuries reveals it as both an economic and moral issue. He refutes Bernard Mandeville’sMandeville, B. extreme view that all non-essential consumption is luxuryLuxuries, instead recognizing the social and economic roles of luxuryLuxuries goods. Smith argues that while luxuryLuxuries can promote employment and economic activity, moderation and self-control are crucial for individual well-being and the advancement of society. He suggests that social norms and economic conditions define what constitutes luxuryLuxuries, which evolves over time.Smith’s insights into consumerConsumers behaviour and the impact of luxuryLuxuries on society lead to his advocacy for rational, moderate consumption. He suggests that appeals to reason and self-control can channel human impulses into socially beneficial actions. TaxesTaxes on luxuryLuxuries goods may regulate consumption patterns, balancing economic benefits with social moderation. Smith ultimately sees the competent management of luxuryLuxuries consumption as essential for maintaining social stability and enhancing overall prosperity. (shrink)

Adam Smith was a philosopher before he ever wrote about economics, yet until now there has never been a philosophical commentary on the Wealth of Nations . Samuel Fleischacker suggests that Smith's vastly influential treatise on economics can be better understood if placed in the light of his epistemology, philosophy of science, and moral theory. He lays out the relevance of these aspects of Smith's thought to specific themes in the Wealth of Nations , arguing, among other things, (...) that Smith regards social science as an extension of common sense rather than as a discipline to be approached mathematically, that he has moral as well as pragmatic reasons for approving of capitalism, and that he has an unusually strong belief in human equality that leads him to anticipate, if not quite endorse, the modern doctrine of distributive justice. Fleischacker also places Smith's views in relation to the work of his contemporaries, especially his teacher Francis Hutcheson and friend David Hume, and draws out consequences of Smith's thought for present-day political and philosophical debates. The Companion is divided into five general sections, which can be read independently of one another. It contains an index that points to commentary on specific passages in Wealth of Nations . Written in an approachable style befitting Smith's own clear yet finely honed rhetoric, it is intended for professional philosophers and political economists as well as those coming to Smith for the first time. (shrink)

While Thomas Hobbes is not typically cited as a philosopher concerned with economic inequality, there is a great deal of evidence in his writings to suggest that he was aware of inequality and worried about its effects on the commonwealth. This essay first contextualizes Hobbes in the development of the 17th-century English political economy to understand the mercantilist milieu that might have shaped Hobbes’s thoughts. Second, it then explores Hobbes’s thoughts on wealth, poverty, and inequality, as outlined in his (...) major political works – revealing distinctively Hobbesian grounds for understanding these phenomena. Third and finally, it explores Hobbes’s constructive political philosophy for means by which he might offer prescriptions for addressing them. (shrink)

This paper proposes to treat as problematic what traditional managerialism views as axiomatic: the a priori acceptance of the doctrine of shareholder wealth maximization (SWM). To accomplish this objective, this paper takes as its focus the factors that influence shareholder support for corporate social performance (CSP) by developing a conceptual model of the relationship between instrumental and non-instrumental motives on shareholder support for CSP.

Karl Marx's Capital is critique of the capitalistically organised social relations of reproduction. It recognises economic categories as perverted social categories and asks about the manner in which human social practice manifests itself in the form of independent economic categories and laws that unfold as if governed by invisible principles. He says, the capitalist relations are beyond human control and he argues that the indi-viduals act under economic compulsion and are controlled by the products of their own labour. His critique (...) says, in the capitalist social relations the individuals act as personification of economic categories. The immense wealth of capitalist society is abstract, it appears in the form of money as more money. In these wealth-relations, time is money, the satisfaction of human needs a mere sideshow. Yet, the economic categories are purely social forms. Critique of political economy is social critique of economic inversion, it is about the sheer unrest of live as the hidden misery of economic things. (shrink)

Wealth inequality is a prevalent social issue. The present study focuses on acceptance of wealth inequality, and considers personal income, perceived upward mobility, and future time perspective as its antecedents, and collective action intention as its outcome. With reference to the social identity literature and socioemotional selectivity theory, we posit a conditional indirect effect of income on collective action intention through acceptance of wealth inequality: only when mobility and future time perspective are relatively high, higher income is (...) associated with higher acceptance of wealth inequality and in turn, lower collective action intention. Moderated mediation findings, based on territory–wide phone survey data from 866 Hong Kong adults, supported this prediction. This work indicates the relevance of an individual-level instrumental perspective to the understanding of acceptance of wealth inequality as well as collective action intention. (shrink)

A story of rabbinic poverty relief serves as the fulcrum of this presentation of a rabbinic perspective on wealth and taxes. The rabbinic move, from biblical to Mishnaic law, places the obligation of poverty relief on the city and suggests that the institutions of the polis are the only way to achieve justice on this scale. However, the city must be aware of the individual Other in making policy. In essence the story suggests that when policies ignore the face (...) of an individual stranger, they do not fulfill the demands of justice. This is the rabbinic attempt at threading the needle by walking in the tension between the obsessive asymmetry of the obligation towards the other person and the need for a larger more equitable system of justice which must include others. (shrink)

Develops the concept of sustainable development and shows how it is related to the maintenance of social well‐being through time. It is shown that wealth, estimated in terms of accounting prices, serves admirably as an index of well‐being over time and across generations. A country's wealth measures the social worth of its capital assets. The notion of wealth developed here is a comprehensive one, including in it the social worth of manufactured and human capital, public knowledge, and (...) natural capital. Given that movements in wealth over time measure movements in social well‐being, the object of study is then shown to be genuine investment, the social worth of net changes in an economy's capital assets. Thus, ensuring that social well‐being is sustainable involves taking care that the economy's assets are managed well. The theory is also put to work on contemporary data from the poorest countries in the world. Movements in the wealth of nations present a vastly different picture from the one gleaned from the two most popular measures of social well‐being. A substantial reassessment of the post‐war development experience among poor countries is now needed if sustainable development is to be anything more than a slogan at national and international conferences. (shrink)

What the Old Testament says about wealth and poverty cannot be taken as prescriptive for any modern society, but its emphasis on the fate of the powerless prompts us to ask how our society deals with those unable to protect themselves from the depredations of others.

This article suggests enacting an accession tax instead of the estate duty – which was repealed in Israel in 1981. This suggestion evolves from historical and normative explorations of the tension between perceptions of familial intergenerational property rights and justifications for the “death tax,” as termed by its opponents, i.e., estate and inheritance tax. First, the Article explores this tension as expressed in the history of the Israeli Estate Duty Law. This chronological survey reveals a move from the State’s taken-for-granted (...) interest in revenue justifying the Law’s enactment in 1949; moving on to the “needy widow” and “poor orphan” in whose name the tax was attacked during the years 1959–1964, continuing to the abolition of the tax in 1981 in the name of efficiency and the right of the testator to transfer his wealth to his family, and finally cumulating with the targeting of tycoon dynasties that characterizes the recent calls for reintroducing the tax. Next, based on the rich literature on the subject, the Article maps the arguments for and against intergenerational wealth transfer taxation, placing the Israeli case in larger philosophical, political, and pragmatic contexts. Lastly, it associates the ideas of accession tax and “social inheritance” with inspirational sources for rethinking a realistic wealth transfer taxation to bridge the gap between notions of intergenerational familial rights and intergenerational social justice. (shrink)