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Business and economic ethics: the ethics of economic systems

Author: Rich, Arthur Publisher: Peeters, 2006.Language: EnglishDescription: 694 p. ; 24 cm.ISBN: 9042914394Type of document: BookBibliography/Index: Includes bibliographical references and index
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Book Europe Campus
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Print BJ53 .R53 2006
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001225329
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Includes bibliographical references and index

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Business and Economic Ethics The Ethics of Economic Systems Table of Contents VOLUME I: Foundations from a Theological Perspective Foreword .......................................................................................... 5 Foreword to the Fourth Edition .................................................... 7 I. Preliminary Questions ..................................................................9 1. The Bi-Dimensionality of the Fundamental Ethical Question 11 2. Directions of Research and Main Schools of Thought in Ethics17 2.1 Directions of Research ...................................................... 17 2.1.1 Descriptive Ethics .................................................... 17 2.1.2 Normative Ethics ..................................................... 19 2.1.3 Metaethics ............................................................... 19 2.2 Main Schools of Thought in Normative Ethics in their Internal Problematic .......................................................... 21 2.2.1 Empiricist Ethics .................................................... 21 2.2.2 Norm or Principle Ethics ......................................... 23 2.2.3 Casuistic Ethics ...................................................... 25 2.2.4 Situation Ethics ..................................................... 27 2.2.5 The Ethics of Conviction .......................................... 30 2.2.6 The Ethics of Responsibility ..................................... 31 2.3 Preliminary Summary ...................................................... 34 3. Basic Aspects and Main Fields of the Ethical ........................ 37 3.1 The Relationship Field of Ethics ....................................... 37 3.1.1 The First Basic Relationship: I-Self (The Individual Aspect) .......................................................................... 38 3.1.2 The Second Basic Relationship: I-Thou (The Personal Aspect) .......................................................................... 38 3.1.3 The Third Basic Relationship: I / We-It (The Ecological Aspect) .............................................................. 42 3.2 The Basic Relationships in their Institutional Mediation 45 3.2.1 The Institutionalizing Effect in the I/We-It Relationship ........................................................................ 46 3.2.2 The Institutionalizing Effect in the I-Thou Relationship ........................................................................ 48 3.2.3 The Institutionalizing Effect in the I-Self Relationship ........................................................................ 50 3.3 The Main Aspects of Ethical Responsibility and their Integration in Social Ethics .............................................. 52 3.3.1 Individual Ethics .................................................... 53 3.3.2 Personal Ethics ....................................................... 55 3.3.3 Environmental Ethics ............................................. 57 3.3.4 Social Ethics ............................................................ 59 3.4 Business and Economic Ethics as a Special Case of Social Ethics .............................................................................. 61 II. Foundational Considerations .................................................. 63 4. Social Ethics in the Context of the Social Sciences .............. 65 4.1 The Relationship to the Social Sciences ........................... 65 4.2 Economic Rationality and Human Justice ...................... 70 4.3 The Problem of the Normative in the Social Sciences . . .. 76 4.3.1 The Natural Law Approach ...................................... 77 4.3.2 The Approach of Critical Theory .............................. 80 4.3.3 The Approach of Critical Rationalism ..................... 83 4.3.4 The Approach of Gerhard Weisser's Normative Social Science ...................................................................... 88 4.3.5 Conclusions ............................................................ 93 4.4 Methodological Consequences .......................................... 95 5. Humanity originating from Faith, Hope, and Love ................ 99 5.1 The Horizon of General Human Experience Rooted in Faith, Hope, and Love ........................................................ 99 5.2 The Experience of Evil ........................................................ 102 5.3 The Experience of the Totally Other .................................. 109 5.4 The Specifically Christian in the Humanity originating from Faith, Hope, and Love ............................................... 116 5.5 The Specifically Christian and the Generally Human in the Humanity originating from Faith, Hope, and Love . 121 6. The Theological Approach ........................................................ 125 6.1 The Eschatological Dimension of the Humanity originating from Faith, Hope, and Love .................................................. 125 BUSINESS AND ECONOMIC ETHICS VII 6.2 The Absolute and the Relative in the Problem Field of Theological Ethics .............................................................. 129 6.2.1 The Transcendental-Eschatological Approach (The Early Karl Barth) ...................................................... 130 6.2.2 The Creation-Theological Approach (Emil Brunner) 138 6.2.3 The Christological Approach (The Late Karl Barth) 147 6.2.4 The Historical-Theological Approach (Theology of Revolution or Liberation) .......................................... 154 6.2.5 The Existential-Eschatological Approach (The New Way) ................................................................................... 159 6.3 The Three Levels of Social-Ethical Argumentation . . ...... 167 7. Criteria of the Humanly Just and their Orientation towards Social Justice ......................................................................... 169 7.1 The Basis of the Humanly Just ...................................... 169 7.2 Explication of the Criteria of Human Justice .................. 170 7.2.1 The Criterion of Creatureliness ............................... 170 7.2.2 The Criterion of Critical Distance ............................ 176 7.2.3 The Criterion of Relative Reception ......................... 178 7.2.4 The Criterion of Relationality ................................... 181 7.2.5 The Criterion of Fellow-Humanness ........................ 189 7.2.6 The Criterion of Fellow-Creatureliness ................... 191 7.2.7 The Criterion of Participation .................................. 193 7.3 Human Justice Originating from Faith, Hope, and Love and Social Justice ........................................................... 198 7.3.1 The Criteria of Human Justice as Conditions of Social Justice ......................................................... 198 7.3.2 Social Justice as a Permanent Duty of the Hoping Love of Faith ............................................................... 199 7.3.3 John Rawls' Theory of Justice from the Perspective of the Criterial Requirements of Human Justice from Faith, Hope, and Love ..................................... 204 7.3.4 Guidelines for Social Justice .................................. 214 8. Social-Ethical Maxims ............................................................ 221 8.1 The Formal Aspect of Maxims ........................................... 221 8.2 The Principal Steps in the Formation of Maxims . . . ....... 223 8.2.1 Demonstration of the Problem ................................ 223 8.2.2 Examining Existing or Postulated Concepts of Analysis ........................................................................... 224 8.2.3 Norm-Critical Clarifications ..................................... 224 8.2.4 Determination of the Guidelines ............................. 225 VIII ARTHUR RICH 8.2.5 Critical Examination .............................................. 226 8.3 The Maxims' Claim to Validity .......................................... 227 8.4 On Dealing with Biblical Maxims ..................................... 232 8.5 The Distinctive Characteristic of Christian Social Ethics 240 Bibliography ................................................................................ 243 Business and Economic Ethics The Ethics of Economic Systems Table of Contents VOLUME II: Market Economy, Planned Economy, and Global Economy from the Perspective of Social Ethics Foreword ....................................................................................... 267 1. The Question of Meaning in the Economy ............................ 269 1.1 The Ethical Dimension of the Question of Meaning in the Economy ..................................................................... 269 1.2 The Question of Meaning in the Economy as the Question of Human Justice in the Economy .......................... 273 1.3 The Criteria of the Humanity Originating from Faith, Hope, and Love as Guidelines for Clarifying the Question of Meaning in the Economy ...................................... 275 1.3.1 The Fundamental Purpose of the Economy . . . ..... 275 1.3.2 The Humane Purpose of the Economy ................... 277 1.3.3 The Social Purpose of the Economy ....................... 282 1.3.4 The Ecological Purpose of the Economy ................. 286 1.3.5 The Relationality of the Purposes .......................... 290 1.3.6 The Question of Meaning in the Economy within the Area of Tension between the Relative and the Absolute ................................................................... 295 2. Aspects and Perspectives of the Modern Industrial Economy 299 2.1 What is the Economy? ..................................................... 299 2.2 Industry and Industrialization ....................................... 301 2.3 The Process of Industrial Rationalization ....................... 305 2.3.1 Rationalization as a Basic Phenomenon of the Economy ........................................................................ 305 2.3.2 Product-Oriented Division of Labor ........................ 306 2.3.3 Production-Oriented Division of Labor ................... 308 2.3.3.1 Production-Oriented Division of Labor under the Conditions of Mechanically-Aided Rationalization ................................................... 308 X ARTHUR RICH 2.3.3.2 Production-Oriented Division of Labor under the Conditions of Electronically-Aided Rationalization ............................................ 314 2.3.3.3 Specific Effects and Possibilities in the Field of Production ............................................... 318 2.3.4 Socially and Economically Relevant Consequences of the Process of Industrial Rationalization for Human Persons ..................................................... 326 2.4 The Factors of Production ............................................... 329 2.4.1 On the Taxonomy of Terminology ........................... 329 2.4.2 An Overview of the Factors of Production . . . ........ 331 2.4.2.1 The Factor of Land, or Nature ................... 331 2.4.2.2 The Factor of Labor .................................... 333 2.4.2.3 The Factor of Capital ................................. 337 2.4.3 The Question of Determining the Relationship between "Capital" and "Labor" ................................. 340 2.5 Economic Subjects .......................................................... 342 2.5.1 Producers ............................................................... 342 2.5.2 Consumers ............................................................ 348 2.5.3 The State ................................................................ 351 2.6 Industrial Economy as the Economy of Markets . . . ...... 355 2.6.1 The Concept and Morphology of the Market . . ...... 355 2.6.2 The Multiplicity and Borderless Expansion of Markets ...................................................................... 358 2.6.3 Multinationalization ............................................... 361 2.7 Economic Growth ............................................................. 371 2.7.1 The Magnitude and Stimuli of Economic Growth .. 371 2.7.2 Industrial Capitalism ............................................ 377 2.7.3 Quantitative and Qualitative Economic Growth .... 380 2.8 The Double Face of the Industrial Economy ................... 384 3. An Analysis of the Principal Problems in Business and Economic Ethics .................................................................... 389 3.1 Fundamental Questions of Economic Order ................... 389 3.2 Ethical Implications of the Three Fundamental Questions 390 3.2.1 Ethical Implications of the First Fundamental Question (What and how much should be produced?) 390 3.2.2 Ethical Implications of the Second Fundamental Question (How should goods and services be pro duced?) ................................................................... 392 BUSINESS AND ECONOMIC ETHICS XI 3.2.3 Ethical Implications of the Third Fundamental Question (For whom should goods and services be produced?) . 394 3.3 Principal Ethical Problems in View of the Question of Ordering the Economy .................................................... 397 3.3.1 The Fundamental Problem ................................... 397 3.3.2 The Problem of Efficiency ....................................... 398 3.3.3 The Problem of Human Justice in the Economy .. 399 3.3.4 Human Justice from the Perspective of FellowHumanness ......................................................... 400 3.3.5 Human Justice from the Perspective of Participation 401 3.3.5.1 Participative Cooperation ......................... 402 3.3.5.2 Participative Distribution ......................... 404 3.3.5.3 A Participative Global Economy ............... 416 3.3.6 Human Justice from the Perspective of FellowCreatureliness ..................................................... 420 3.3.6.1 Stabilization of Population ....................... 421 3.3.6.2 Stabilization of Demands ......................... 423 3.3.6.3 Stabilization of the Environment ............. 424 3.3.7 Human Justice from the Perspective of Relationality 427 3.3.7.1 Relationality of the Basic Valu es ...................427 3.3.7.2 The Relationality of Human Justice and Economic Rationality ................................. 429 4. Basic Economic Systems ..................................................... 435 4.1 Preliminaries .................................................................. 435 4.1.1 Transition ............................................................. 435 4.1.2 "Economic System" and "Economic Order": Demarcation of Terminology ............................................. 435 4.1.3 Theories of Economic Systems .............................. 436 4.2 The Basic System of the Market Economy .................... 439 4.2.1 On the Concept of the Market Economy .............. 439 4.2.2 The Coordination System of the Market Economy (Order through Competition) ................................ 441 4.2.2.1 The Basic Principle ................................... 441 4.2.2.2 The Economic Subject or Planner ............ 441 4.2.2.3 Market-Economic Coordination ............... 442 4.2.2.4 The Actually Existing Market Economy ... 446 4.2.2.5 The Coordination Dilemma ...................... 452 4.2.3 The Limitations of the Market Economy ............... 455 4.2.4 Relativization of the Market Economy ................... 461 XII ARTHUR RICH 4.3 The Basic System of the Centrally Planned Economy . . 463 4.3.1 Terminology ..............................................................463 4.3.2 Beginnings and First New Approaches of the Theory of Central Planning in Marxism-Leninism 463 4.3.3 The Coordination System of the Centrally Planned Economy (Order through Central Planning) . . . .... 469 4.3.3.1 The Basic Principle .................................... 469 4.3.3.2 State Collective Property and Central Planning ............................................................ 470 4.3.3.3 State Economy and Power Monopoly of the Communist Party ................................. 472 4.3.3.4 Economic Subject and Planner ................. 473 4.3.3.5 Problems of Coordinating in the Centrally Planned Economy ....................................... 474 4.3.4 The Limits of the Centrally Planned Economy . ..... 483 4.3.5 Relativization of the Centrally Planned System ...... 486 5. Evaluation and Decision Maxims for the System Question in the Economy ........................................................................... 489 5.1 On the Concept of Maxims ............................................... 489 5.2 Basic Considerations for Finding Maxims ........... 490 5.2.1 Basic Considerations from the Perspective of Human Justice ........................................................ 490 5.2.1.1 Self-Interest and Common Good ............... 491 5.2.1.2 Adam Smith's Concept of the Market Economy ............................................................ 492 5.2.1.3 Basic Conditions of the Reception of the System ........................................................ 496 5.2.2 Basis Considerations from the Perspective of Eco nomic Rationality .................................................... 498 5.2.2.1 The Question of the Convergence of the Decentralized Market System and the Centralized Planning System ............................ 5.2.2.2 Delimitation of the Relativization Principle of the Convergence Thesis .......................... 5.2.2.3 Fundamental Possibilities of Combining Market and Plan ........................................ 5.2.2.4 Market Modification of the Planned Economy ............................................................ 5.2.2.5 The Plan-Modified Market Economy . . ...... 5.3 Maxims ............................................................................. 498 503 505 506 513 520 BUSINESS AND ECONOMIC ETHICS XIII 6. Maxims for Evaluation and Decision-Making Regarding the Question of Order in Economic Systems .............................. 525 6.1 Preliminary Remarks ....................................................... 525 6.2 Categories of Order within the Market-Economy .. . ...... 526 6.2.1 The Capitalist Market Economy ............................ 526 6.2.2. The Social Market Economy ................................. 536 6.2.3 The Democratic Market Economy (The Swedish Model) ............................................................................ 545 6.2.4 The Socialist Market Economy ............................... 554 6.2.4.1 The Western Type of the Socialist Market Economy ...................................................... 554 6.2.4.2 The Eastern Version of the Socialist Market Economy ...................................................... 559 6.2.5 Humanly Reformed Market Economy (Ota Human Economic Democracy) ............................... 565 6.2.5.1 Macro-Economic Plan of Distribution . .... 566 6.2.5.2 Democratic Planning Decisions ................. 568 6.2.5.3 Ownership Reform (Collaberative Companies) ........................................................ 570 6.2.5.4 Problems .................................................... 575 6.2.6 The Ecologically Regulated Market Economy . ...... 579 6.2.6.1 The Fundamental Problem ....................... 579 6.2.6.2 The Ecology-Oriented Economy ................ 581 6.2.6.3 Elements of an Ecology-Oriented Regulatory System of the Market Economy ................. 583 6.2.6.4 Unanswered Questions ............................. 587 6.3 Some Basic Ideas about Finding Maxims Regarding the Problem of Order in the Economy .................................... 589 6.3.1 Some Basic Thoughts on the Aspect of Economic Rationality ............................................................... 6.3.2 Some Basic Reflections on What is Humanly Just 6.3.2.1 Principal Issues ........................................ 6.3.2.2 Weighing the Options ................................ 6.4. Maxims ............................................................................ 7. The Global Economic Outlook ............................................... 7.1 Preliminary Remarks ....................................................... 7.2 Global Challenges for the Market Economy ................... 7.3 Basic Conditions for Participative Cooperation in the Global Economy ................................................................ 7.3.1 Participative Debt Redemption ............................... 590 594 594 598 612 619 619 620 625 625 XIV ARTHUR RICH 7.3.2 Participative Market Order ..................................... 631 7.3.3. Requirements for Developing Countries ............... 633 7.3.3.1 Requirements with Regard to the Economic Efficiency of an Economic System ............. 633 7.3.3.2 Requirements in View of the Social Efficiency of an Economic System ................... 634 7.3.3.3 Requirements in View of the Ecological Efficiency of an Economic System ............. 635 7.3.3.4 Order-Political Requirements .................... 636 7.4 Global Economic Market Regulation: A Problem in Need of Solution ......................................................................... 637 7.5 Maxims ............................................................................. 641 8. Epilogue ................................................................................. 645 Bibliography ................................................................................ 653

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