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Topic 3: Economics and ethics /2548

Lecture handouts

A note about lecture handouts – you should regard the lecture handouts as a skeleton or framework for ideas that we flesh out in the lectures. Moreover, that skeleton requires you to follow up through the guided reading. The handouts alone are simply insufficient for you to address the module in a satisfactory fashion – they are merely the starting point.

PDFs of lecture handouts will only be made available some time after the lectures. Attending the lecture is the most reliable way to get the lecture handouts.

  • w15 – Introduction to economics and ethics [pdf]
  • w16 – Motivation crowding theory
  • w17 – Key concepts – morals, ethics and law
  • w18 – Do economists lack morals?
  • w19 – Mapping ethical space
  • w20 – CSR theory 1: Instrumental – Friedman, Porter and Kramer
  • w21 – CSR theory 2: Integrative  – Carroll, Schwartz and Carroll
  • w23 – CSR theory 3: Ethical  – Freeman

From behavioural economics to ethics [w15-17]

Ariely, D (2009), Predictably irrational, London: Harper

Crane, A and Matten, D (2010), Business Ethics (3rd ed), Oxford: OUP

Dowie, M (1977), Pinto Madness, Mother Jones Magazine, Sept/Oct

Deci, E et al (1999), A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation, Psychological Bulletin, Nov 125 (6), pp627-68

Frey, B and Jegen, R (2001),  Motivation crowding theory, Journal of Economic Surveys, v15 no. 5, 589-611

Hazard, GC (1995), Law, morals and ethics, Yale Law School: Faculty Scholarship Series, Paper 2372

Layard, R (2006), Happiness – Lessons from a new science,  London: Penguin

Nash, LL (1990), Good intentions aside: A  manager’s guide to resolving ethical problems, Harvard Business Press

Penenberg, A (2014), GM’s hit and run: How a lawyer, mechanic, and engineer blew open the worst auto scandal in history, Pando Daily, Oct 18th

Sandel, M (2012), What money can’t buy – The moral limits of markets, London: Allen Lane

Michael Sandel’s talk at Aspen Ideas Festival 2012

Michael Sandel’s 2013 TED talk in Edinburgh

Schwartz, GT (1991), The myth of the Ford Pinto case, Rutgers Law Review, v43 pp1013-1068

Examples from week 15 lecture

Chakrabortty, A (2016), Boots staff under pressure to milk the NHS for cash, says pharmacists’ union, The Guardian, April 13th

Evans R et al (2016), Rolls-Royce middlemen may have used bribes to land major contractsThe Guardian, Oct 31st

Farrell, S (2016), World’s 20 biggest banks rack up £252bn ‘conduct costs’ in five yearsThe Guardian, July 18th

Monaghan, A (2016), Pfizer fined record £84.2m over NHS overchargingThe Guardian, Dec 7th

Neslen, A (2016), EU drops law to limit cancer-linked chemical in food after industry complaintThe Guardian, Oct 26th

Osborne, H (2016), Uber loses right to classify UK drivers as self-employedThe Guardian, Oct 28th

Thielman, S (2016), Volkswagen to pay $14.7bn settlement and buy back cars from consumersThe Guardian, June 28th

Treanor, J (2016), HSBC, JP Morgan and Crédit Agricole fined €485m by EUThe Guardian, Dec 7th

Week 17 scenario

Neate, R (2015), GM to pay $900m to avoid criminal inquiry into fault that led to deaths, The Guardian, Sept 17th

GM Ignition recall site

Ethics and economics [w18-19]

Daniel, A and Arce, M (2004), Conspicuous by its absence: ethics and managerial economics, Journal of Business Ethics, v54, pp261-277

Fisher, C and Lovell, A (2009), Business Ethics and Values (3rd ed), London: FT-Prentice Hall

Hausman, D and McPherson, M (1993), Taking ethics seriously: Economics and contemporary moral philosophy, Journal of Economic Literature, v31, June, pp671-731 [large, annotated pdf]

Lopez-Perez, R and Spiegelman, E (2012), Do Economists Lie More?Department of Economic Analysis, Universidad Autonoma de Madrid Working Paper 4/2012 (see also Weissmann, J (2012), Research Says: Studying Economics Turns You Into a Liar, The Atlantic, Dec 18th)

Rowen, D and Dietrich, M (2004), Incorporating ethics into economics: problems and possibilities, Sheffield Economic Research Paper Series, no. 2004006, University of Sheffield

Skidelsky, R (2007), Keynes in the long runWorld Economics, Vol. 8, No. 4, October-December

Smith, Y (2013a), Ethics and Complex Systems, Naked Capitalism [blog], Oct 16th

Corporate Social Responsibility [w20-21, 23]

Blowfield, M and Murray, A (2011), Corporate responsibility (2nd ed), Oxford: OUP

Carroll, A (1991), The pyramid of corporate social responsibility: toward the moral management of organizational stakeholdersJournal of Business Horizons, pp39-48
[reprinted in Crane, A et al (eds) (2008), Corporate Social Responsibility: Readings and cases in a global context, Abingdon: Routledge]

Chryssides, GD and Kaler, JH (1993), An introduction to Business Ethics, London: Chapman and Hall

Crane, A and Matten, D (2010), Business Ethics (3rd ed), Oxford: OUP

Day, Peter (2010), Global Business: Michael Porter interview, BBC World Service, Dec 27th [podcast – mp3]

Darigan, KH and Post, JE (2009) , Corporate Citizenship in China: CSR Challenges in the ‘Harmonious Society’, The Journal of Corporate Citizenship, i35 Autumn pp35–53

Denning, S (2011), Why ‘Shared Value’ Can’t Fix Capitalism, Forbes, Dec 20th

Denning, S (2012), What Killed Michael Porter’s Monitor Group? The One Force That Really Matters, Forbes, Nov 20th

Elkington, J (2012), Sustainability should not be consigned to history by Shared Value, The Guardian Sustainable Business blog, June 7th

Freeman, RE (1984), Strategic Management: A stakeholder approach, [digital reprint 2010 – Cambridge University Press]

Friedman, M (1970), The Social Responsibility of Business is to Increase its Profits, The New York Times Magazine, September 13

Garriga, E and Melé, M  (2004), Corporate Social Responsibility Theories: Mapping the Territory, Journal of Business Ethics, v54, pp51-71

Geva, A (2008), Three Models of Corporate Social Responsibility: Interrelationships between Theory, Research, and PracticeBusiness and Society Review, Volume 113, Issue 1, pages 1–41, Marc

Haque, U (2011), The New Capitalist Manifesto: Building a Disruptively Better Business, Harvard Business School Press

Haque, U (2011), Betterness: Economics for Humans, Harvard Business School Press [Kindle single]

Haque, U (2011), Business isn’t as profitable as betterness, Co.Exist [Fast Company]

Husted, BW and Salazar, J (2006), Taking Friedman seriously: Maximising profits and social performance, Journal of Management Studies, v43 i1, pp75-91

Mintzberg, H (1983), Power In And Around Organizations, Englewood Cliffs, N.J.: Prentice-Hall [see Part V: Who should control the corporation]

Margolis, JD and Walsh, (2003), Misery Loves Companies: Rethinking Social Initiatives by BusinessAdministrative science quarterly, v48 pp268-305

Margolis, JD et al (2009), Does it pay to be good . . . and does it matter? A meta-analysis of the relationship between corporate social and financial performance, SSRN Working Paper series

Orlitzky, M (2008), Corporate social performance and financial performance: a research synthesis, in Crane et al (Eds.), The Oxford Handbook on Corporate Social Responsibility, p. 113-134. Oxford: Oxford University Press

Philips, R, Freeman, RE, and Wicks, AC (2003), What stakeholder theory is notBusiness Ethics Quarterly, v13 i4, pp479-502

Porter, M and Kramer, M (2011), Creating Shared Value, Harvard Business Review, Jan-Feb

Porter, M (2013), Why business can be good at solving social problems, TED Global – Edinburgh, June

Porter, M and Kramer, M (2006), Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review, Dec [EBSCO]

Rondinelli, DA and Berry, MA (2000), Environmental Citizenship in Multinational Corporations: Social Responsibility and Sustainable DevelopmentEuropean Management Journal, Vol. 18, No. 1, pp. 70–84

Schwartz, M and Carroll, AB (2003), Corporate Social Responsibility: A three-domain approach, Business Ethics Quarterly, v13 no.4 pp503-530 [reprinted in Crane, A et al (eds) (2013), Corporate Social Responsibility: Readings and cases in a global context (2nd ed), Abingdon: Routledge]

Smith, Y (2013b) , Why the “Maximizing Shareholder Value” Theory of Corporate Governance is BogusNaked Capitalism [blog], Oct 21st

General

Benjamin, A (2011), Pesticide firms must be held to account for bee poisoning, Guardian Environment blog, Dec 2nd

Fast Company’s Ethonomics collection of articles

Ethonomics.org

Other

R Edward Freeman’s site

Ed Freeman Video clips: What is stakeholder theory? and What are stakeholders?

Michael Sandel’s (2009) Reith lecture on Radio 4 on markets and morals

Bandolier (2007), Risk of death and transportation data, University of Oxford

FSG [non-profit consultancy] on ‘shared value’

The Corporation [polemic documentary by Joel Bakan]

Vehicle and Operator Services Agency – recalls – explore how many recalls manufacturers have undertaken recently