The Rehabilitation of Adam Smith for Catholic Social Teaching

Catholic Social Teaching (CST) takes a rather cautious view toward the value of the ideas of Adam Smith, due to his emphasis on negative political and economic liberty. Detractors of Smith within CST point to what they consider to be deficiencies within his works: an impoverished moral anthropology, a lack of concern for the common good, and markets untethered to human needs. Defenders of Smith within CST tend to emphasize the material benefits that derive from Smithian institutions, such as economic growth, improvements in standards of living, and the new opportunities that arise from cultures focused on innovation. This paper argues that Smith’s ideas have real value for CST. However, this value primarily lies in his moral psychology. While not denying the dangers of business activity for our moral lives, Smith also helps us to understand the possibility of the moral corruption of those who wield political power, thus providing an indirect defense of political and economic liberty that coheres with important Christian ethical notions found in CST. This is the case even though CST does not consistently recognize concerns surrounding the dangers of wielding political power—and thus Smith’s arguments offer real challenges to CST as well. This paper further suggests that these basic insights are relevant regardless of one’s favored institutional arrangements.     

Adam Smith and the ethics of contemporary capitalism

This paper presents a theoretical elaboration of the ethical framework of classical capitalism as formulated by Adam Smith in reaction to the dominant mercantilism of his day. It is seen that Smith's project was profoundly ethical and designed to emancipate the consumer from a producer and state dominated economy. Over time, however, the various dysfunctions of a capitalist economy — e.g., concentration of wealth, market power — became manifest and the utilitarian ethical basis of the system eroded. Contemporary capitalism, dominated as it is by large corporations, entrenched political interests and persistent social pathologies, bears little resemblance to the system which Smith envisioned would serve the common man. Most critiques of capitalism are launched from a Marxian-based perspective. We find, however, that by illustrating the wide gap between the reality of contemporary capitalism and the model of amoral political economy developed by Smith, the father of capitalism proves to be the most trenchant critic of the current order.G. R. Bassiry is currently professor of Management and international business at California State University, San Bernardino, California. Formerly he served as Vice President and Acting President of Farabi University. His most recent articles on business ethics include Ethics, Education, and Corporate Leadership,Journal of Business Ethics and Business Ethics and the United Nations: A Code of Conduct,Sam Advanced Management Journal. He has also published numerous journal articles on international business, corporate strategy and corporate leadership, and is the author ofPower vs. Profit by Arno Press of New York Times.Marc Jones is a management lecturer at the University of Otago, New Zealand. His research interests include multinational corporations and economic development. He has worked as a financial analyst for Electronic Data Systems Corporation and as a management consultant for Peat Marwick Main & Company.     

Adam Smith and the Political Economy of a Modern Financial Crisis

Financial crises have occurred periodically for hundreds of years, and Adam Smith had important insights into their causes. Although by no means all that we know about such crises has been derived from Smith, it is interesting and important to reflect on what he did know and how ignoring his warnings about the creation of excess liquidity has contributed to the current crisis. In addition to the complexity of contemporary finance and the role of central banks and other regulatory institutions, a major difference between Smith's day and ours is the emergence of “moral hazard” as an important policy issue and its corollary, “immoral results.” It is important to realize that the risks of financial crisis, moral hazard, and immoral results cannot be avoided by financial and accounting gimmicks, and that there is no substitute for adequate capital in the creation of liquidity.     

Business Ethics and the Origins of Contemporary Capitalism: Economics and Ethics in the Work of Adam Smith and Herbert Spencer

Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.     

浅谈美国经济发展史

美国是一个外来移民的国家,从荒原到大国崛起和迈向世界超级强国,得力于改革开放和移民政策,没有改革开放就没有美国特色,没有大规模的移民就不会有大量的人才和劳动力涌入美国,就更不会有在现代资本主义国家中,美国的改革开放执西方世界之牛耳.     

从美国社区调查看美国人口统计方法制度的改革

介绍了美国社区调查、人口普查和人口估计方法工作 ,论述了美国人口统计方法制度改革的特点。中国和美国都是人口大国 ,虽然国情不同 ,但在人口统计方法制度的改革方面有许多共同点 ,美国在改革中的思路及方法 ,值得我们借鉴。     

从美国社区调查看美国人口统计方法制度的改革

介绍了美国社区调查、人口普查和人口估计方法工作,论述了美国人口统计方法制度改革的特点.中国和美国都是人口大国,虽然国情不同,但在人口统计方法制度的改革方面有许多共同点,美国在改革中的思路及方法,值得我们借鉴.     

Developing and Measuring the Impact of an Accounting Ethics Course that is Based on the Moral Philosophy of Adam Smith

Accounting ethics failures have seized headlines and cost investors billions of dollars. Improvement of the ethical reasoning and behavior of accountants has become a key concern for the accounting profession and for higher education in accounting. Researchers have asked a number of questions, including what type of accounting ethics education intervention would be most effective for accounting students. Some researchers have proposed virtue ethics as an appropriate moral framework for accounting. This research tested whether Smithian virtue ethics training, based on Adam Smith’s “The Theory of Moral Sentiments” (1790/1976), is effective in improving accounting student’s cognitive moral development (CMD). This research used a pre-test, treatment, post-test, quasi-experimental design utilizing the Defining Issues Test 2 (DIT-2) instrument to measure students’ CMD. Analysis of DIT-2 gain scores did show a significant improvement in subjects’ personal interest scores and a significant improvement in an overall measure of CMD, the DIT N2 index, whereas their DIT-2 post-conventional scores did not improve significantly. This research supports the proposition that the concepts contained in Smithian virtue ethics can contribute to an effective accounting ethics education intervention. However, further research is required to determine what concepts should be included to improve accounting students’ post-conventional moral reasoning.     

From reform to neo-regulation: An assessment of recent political/economic developments in Nigeria

The Nigerian political economy was placed on the path of economic and political liberalization from the mid-1980s. About a decade later, both processes had experienced great reversals. This article examines the social forces that are arrayed against the reform processes. It focuses on recent political and economic developments in Nigeria with a view to understanding the nature of the emerging business environment for the purpose of potential investors, international managers, aid agencies, and donor countries in Africa's most populous country. While noting the inevitability of a modicum of regulation in the nation's economic adjustment program, this study contends that the regulatory measures contained in the 1994 budget prepared by the new military junta in Nigeria is stifling investment, and can neither lay the basis for the recovery of, nor engender sustainable development in the nation's economy. A more appropriate management of the exchange and interest rate regimes, and the democratization of the political processes as the minimum prerequisite for stability, growth, and development in the Nigerian political economy is recommended. © 1995 John Wiley & Sons, Inc.     

从开放性次区域自由贸易区到全面性两岸经济一体化--海峡两岸经济一体化实现路径研究

两岸经济一体化是两岸经济体自身发展的必然与要求,但受到当前两岸政治关系的严重约束,需要寻求突破约束的实现路径.借鉴近年来国际上次区域经济合作的成功经验,在"小三通"与"试点直航"等现实基础条件上,两岸先行在次区域层面共建开放性的厦-金、厦-高自由贸易区应是两岸经济一体化的一个现实路径.     

Correction to: From the Editor

Business Economics -     

American economic relations with the Federal Republic of Germany and with Japan

Disagreement on appropriate policies to reduce the American balance of payments deficit has been a major source of friction between the US, on the one hand, and the Federal Republic of Germany and Japan, on the other. Against this background Professor Bronfenbrenner Presents a theoretical analysis of how deficit countries may proceed to solve their problems, passing on to point out, in terms of this general analysis, what the US is doing and what Germany and Japan would like it to do.

     

American economic relations with the Federal Republic of Germany and with Japan

Disagreement on appropriate policies to reduce the American balance of payments deficit has been a major source of friction between the US, on the one hand, and the Federal Republic of Germany and Japan, on the other. Against this background Professor Bronfenbrenner Presents a theoretical analysis of how deficit countries may proceed to solve their problems, passing on to point out, in terms of this general analysis, what the US is doing and what Germany and Japan would like it to do.     

Unmastered risks: From crisis to catastrophe: An economic and management insight

In contrast to sociology, economics, and above all, business economics has not yet discovered disaster management as a research topic even though this subject affects many areas of economics due to its interdisciplinary character. The enormous economic losses suffered by private parties, businesses and public institutions in crisis events, the huge amounts of money which are spent in disaster prevention, as well as the challenges that providing emergency management and disaster control present, contain many issues and have an increasing social and economic relevance. This article takes a close look at the concept of disaster from an economic and management point of view to mitigate the impact on human beings and environment. Based on the rational choice approach the study analyzes the state of preparedness that is mainly responsible for good or poor disaster prevention and presents a theoretical framework for a comprehensive disaster management including examples of practical applications. The conclusion outlines several important areas of future research in business economics.     

货物分发:从工厂到市场

根据多蒙德尔-弗朗霍夫物资管理研(Dortmunder Fraunhofer Instituts)的最新研究表明:仅德国物流市场,每年的营业额就达1250亿欧元.可见,全球物流业将有多么巨大的市场潜力.在过去50年间,物流市场的地位越来越重要.与此同时,物流业也经历着不断的变革,尤其在仓储、运输、采购,甚至整个物流过程的管理方面,都在不断革新.其结果是:一套以完整全面、定向流程、市场导向和以时间管理为基本原理的物流理念脱颖而出.欧洲专家认为,中国的海尔冰箱能快捷地运抵欧洲市场便是一个明证.     

Profit and More: Catholic Social Teaching and the Purpose of the Firm

The empirical findings in Collins and Porras' study of visionary companies, Built to Last, and the normative claims about the purpose of the business firm in Centesimus Annus are found to be complementary in understanding the purpose of the business firm. A summary of the methodology and findings of Built to Lastand a short overview of Catholic Social Teaching are provided. It is shown that Centesimus Annus' claim that the purpose of the firm is broader than just profit is consistent with Collins and Porras empirical finding that firms which set a broader objective tend to be more successful than those which pursue only the maximization of profits. It is noted however that a related finding in Collins and Porras, namely that the content of the firm's objective is not as important as internalizing some objective beyond just profit maximization, can lead to ethical myopia. Two examples are provided of this: the Walt Disney Company and Philip Morris. Centesimus Annus offers a way to expose such myopia, by providing guidance as to what the purpose of the firm is, and therefore as to what kinds of objectives are appropriate to the firm.     

Beyond Scandal: Creating a Culture of Accountability in the Catholic Church

Like many corporations, the Catholic Church in the United States and Ireland has tried to move beyond scandal. In this case, the scandal was the failure of church leaders to protect minors from clergy sexual abuse, particularly in Boston and Dublin. Like corporate leaders, church leaders have faced the challenge of restoring trust after scandal. Influenced by corporate trends toward codes of conduct, the archdioceses of both Boston and Dublin provide codes of conduct, but the differences between them are worth noting. In 2015, the Catholic Church in both the United States and Ireland highlighted the need for a culture of accountability that does not succumb to complacency, and in the United States the bishops have once again been encouraged to learn from business. This paper will demonstrate that the Catholic Church is in dialogue with and learns from codes of conduct and cultural practices in business. At the same time, it will highlight that the Catholic Church must also be attentive to its own mission since a simple adoption of other corporations’ practices can be detrimental to sharing the Gospel. The appropriation of codes of conduct and cultural practices from business reflects the church’s attentiveness to the signs of the times, and this appropriation needs to be evaluated in the light of the church’s mission to share the Gospel with the world.     

From Medics to Managers: The Ascent of the Entrepreneur

Where one stands to engage with the world is not as some New Age Psychologists continue to argue, completely free and self-determined. Rather, it is formed largely beyond one’s control and is fraught with both dangers and opportunities. This pre-determined point of view is referred to as the Assumptive World (Parkes, 1975). This is defined as a “strongly held set of assumptions about the world and the self that is confidently maintained and used as a means of recognizing, planning and acting…Assumptions such as these are learned and confirmed by the experience of many years” (Parkes, 1975, p. 132). There are, further, levels and intensities of assumptions, as refined by Janoff-Bulman, R. (1992). These assumptions form the centre point of our world and our consciousness. They are so much a part of us that we tend not to challenge them. Though unchallenged, these assumptions nevertheless drive our behaviors, set our expectations, and operationalize our moral views.