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Topic 3: Economics and ethics /2548

Lecture handouts

  1. Introduction to ethics – 3a H1
  2. Business ethics – 3b H1
  3. Classifying CSR theories / Friedman on CSR – 3c H1
  4. Porter and Kramer – 3d H1 / 3d H2
  5. Carroll, Schwartz and Carroll – 3e H1 / 3e H2
  6. Freeman – 3f H1

From behavioural economics to ethics

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

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

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

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

Ethics and economics

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

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

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]

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

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

Corporate Social Responsibility

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

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


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


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]