Christoph Luetge

During the current financial crisis, the need for an alternative to a laissez-faire ethics of capitalism (the Milton Friedman view) becomes clear. I argue that we need an order ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. I will point to some aspects of order ethics which highlight the importance of rules, e.g. global rules for the financial markets. In this regard, order ethics (“Ordnungsethik”) is the complement of the German conception of “Ordnungspolitik” which also stresses the importance of a regulatory framework. This framework is needed not to tame the market, but to make it more profitable in the long run. The conception of order ethics relies heavily on contractarianism, especially on James Buchanan’s work. Unlike many other conceptions of ethics, it does not start with an aim to achieve, but rather with an account of what the social world – in which ethical norms have to be implemented – is like. Our social world is different from the pre-modern one. Pre-modern societies played zero-sum games in which people could only gain significantly at the expense of others. And the types of ethics that we are still used to today have been developed within these pre-modern societies. Modern societies, by contrast, can be characterised – by economists and other social theorists alike – as societies with continuous growth. This growth has only been made possible by the modern competitive market economy which enables everyone to pursue his own interests within a carefully devised institutional system. In this system, positive sum games are played, which makes it in principle possible to improve the position of every individual at the same time. Most kinds of ethics, however, resulting from the conditions of pre-modern societies, ignore the possibility of win-win-situations and instead require us to be moderate, to share, to sacrifice, as this would have been functional in zero-sum games. These conceptions distinguish – in more or less strict ways – between self-interest and altruistic motivation. Self-interest, more often than not, is ultimately seen as something evil. Such an ethics cannot be functional in modern societies. Ethical concepts lag behind. Within zero-sum games, it was necessary to call for temperance, for moderate profits, or for a condemnation of lending money at interest. Within positive-sum games, however, the morally desired result of a social process cannot be brought about by changes in motivation, by switching from ‘egoistic’ to ‘altruistic’ motivation. The second theoretical element introduced by order ethics is the distinction between actions and rules, which was already mentioned. Traditional ethics concerns actions: It calls directly for changes in behaviour. This is a consequence of pre-modern conditions as reconstructed before: People in the pre-modern world were only able to control their actions, not so much however the conditions of their actions. In particular, rules like laws, constitutions, social structures, the market order, and also ethical norms have remained stable for centuries. In modern societies, this situation has changed entirely. The rules governing our actions have increasingly come under our control. In this situation, ethics has to focus on rules. Morality must be incorporated in incentive-compatible rules. Direct calls for changes in behaviour without changes in the rules lead only to an erosion of compliance with moral norms. Individuals that continue to behave ‘morally’ will be singled out, because the incentives have not been changed. Moral norms which are to be justified cannot require people to abstain from pursuing their own advantage. People abstain from taking ‘immoral’ advantages only if adherence to ethical norms yields greater benefits over the planned sequence of actions than defection in the single case. Thus ‘abstaining’ is not abstaining in the long run, it is rather an investment in expectations of long-term benefits. By adhering to ethical norms, I become a reliable partner for interactions. The norms do indeed constrain my actions, but they simultaneously expand my options in interactions. And people consent to rules only if these rules hold greater advantages for them, at least in the long run. In general, ethics cannot require people to abandon their individual calculation of advantages. However, it may suggest improving one’s calculation, by calculating in the long run rather than in the short run, and by taking into account the interests of our fellows, as we depend on their acceptance for reaching an optimal level of well-being, especially in a globalized world full of interdependence. The problem of implementation can now be placed at the beginning of a conception of order ethics, justified with reference to the conditions of modern societies I have sketched. Under the conditions of pre-modern societies, an ethics of temperance had evolved that posed simultaneously the problems of implementation and justification. The implementation of well-justified norms or standards could then be regarded as unproblematic, because the social structures allowed for a direct face-to-face enforcement of norms. Pre-modern societies not only favored an ethics of temperance, they also had the instrument of face-to-face-sanctions within their smaller and non-anonymous communities. This instrument is no longer functional in modern anonymous societies, and so we have to face up to the problem of implementation right at the start of our ethical conception. Simultaneously, an order ethics relies on the implementation of sanctions for enforcing incentive-compatible rules. In modern societies, rules and institutions, to a large extent, must fulfil the tasks that were, in pre-modern times, fulfilled by moral norms, which in turn were sanctioned by face-to-face sanctions. Norm implementation in modern societies thus works by setting adequate incentives in order to prevent the erosion of moral norms, which would happen if ‘moral’ actors were systematically threatened with exploitation by other, less ‘moral’ actors. This conception of order ethics is then elaborated further in the area of business ethics.

Karl Popper hat eine Erkenntnis- und Wissenschaftstheorie, eine Philosophie der Naturwissenschaften, eine Sozialphilosophie, eine Philosophie des Geistes und sogar Beiträge zur Ästhetik geliefert. Lediglich eine Ethik fehlt, was bei Popper, der sich immer als Philosoph der Aufklärung bezeichnete, doch etwas erstaunt. Ich werde versuchen, Elemente einer solchen Ethik zu rekonstruieren. Karl Poppers Beiträge zur Ethik sind relativ wenig bekannt. Dies dürfte vor allem daran liegen, dass sich keine seiner Arbeiten ausschließlich mit Ethik beschäftigt. Stattdessen findet man Bemerkungen zu diesem Thema verstreut in ganz verschiedenen Werken, vor allem in der Offenen Gesellschaft. Da Popper keine systematische Darstellung seiner Ansichten zur Ethik geliefert hat, soll dieser Artikel dazu beitragen, diese Lücke zu schließen.

This article reports the findings of AI4People, an Atomium—EISMD initiative designed to lay the foundations for a “Good AI Society”. We introduce the core opportunities and risks of AI for society; present a synthesis of five ethical principles that should undergird its development and adoption; and offer 20 concrete recommendations—to assess, to develop, to incentivise, and to support good AI—which in some cases may be undertaken directly by national or supranational policy makers, while in others may be led by other stakeholders. If adopted, these recommendations would serve as a firm foundation for the establishment of a Good AI Society.

The European Medical Information Framework project, funded through the IMI programme, has designed and implemented a federated platform to connect health data from a variety of sources across Europe, to facilitate large scale clinical and life sciences research. It enables approved users to analyse securely multiple, diverse, data via a single portal, thereby mediating research opportunities across a large quantity of research data. EMIF developed a code of practice to ensure the privacy protection of data subjects, protect the interests of data sharing parties, comply with legislation and various organisational policies on data protection, uphold best practices in the protection of personal privacy and information governance, and eventually promote these best practices more widely. EMIF convened an Ethics Advisory Board, to provide feedback on its approach, platform, and the EcoP. The most important challenges the ECoP team faced were: how to define, control and monitor the purposes for which federated health data are used; the kinds of organisation that should be permitted to conduct permitted research; and how to monitor this. This manuscript explores those issues, offering the combined insights of the EAB and EMIF core ECoP team. For some issues, a consensus on how to approach them is proposed. For other issues, a singular approach may be premature but the challenges are summarised to help the community to debate the topic further. Arguably, the issues and their analyses have application beyond EMIF, to many research infrastructures connected to health data sources.

The German Act on Autonomous Driving constitutes the first national framework on level four autonomous vehicles and has received attention from policy makers, AI ethics scholars and legal experts in autonomous driving. Owing to Germany’s role as a global hub for car manufacturing, the following paper sheds light on the act’s position within the ethical discourse and how it reconfigures the balance between legislation and ethical frameworks. Specifically, in this paper, we highlight areas that need to be more worked out in the future either through ethical conventions, corporate measures or legal measures and examine how the law can be incorporated into the existing discourse on the regulation of technologies. Based on this examination, we derive implications for future discourse and elaborate on companies’ responsibilities in developing autonomous driving technologies in an ethical sense.

The ethics of autonomous cars and automated driving have been a subject of discussion in research for a number of years :28–58, 2016). As levels of automation progress, with partially automated driving already becoming standard in new cars from a number of manufacturers, the question of ethical and legal standards becomes virulent. For exam-ple, while automated and autonomous cars, being equipped with appropriate detection sensors, processors, and intelligent mapping material, have a chance of being much safer than human-driven cars in many regards, situations will arise in which accidents cannot be completely avoided. Such situations will have to be dealt with when programming the software of these vehicles. In several instances, internationally, regulations have been passed, based on legal considerations of road safety, mostly. However, to date, there have been few, if any, cases of a broader ethics code for autonomous or automated driving preceding actual regulation and being based on a broadly composed ethics committee of independent experts. In July 2016, the German Federal Minister of Transport and Digital Infrastructure, Alexander Dobrindt, appointed a national ethics committee for automated and connected driving, which began its work in September 2016. In June 2017, this committee presented a code of ethics which was published in German and in English. It consists of 20 ethical guidelines. Having been a member of this committee, I will present the main ethical topics of these guidelines and the discussions that lay behind them.

Ziel dieses Papiers ist es die Ordnungsethik – einen bereichsethischen Ansatz, der derzeit vor allem für wirtschaftsethische Fragestellungen benutzt wird – als eine universelle Methode zur Analyse von bereichsethischen Fragestellungen vorzustellen. Um das Vorhaben handhabbar zu machen, muss es in zweierlei Hinsicht eingeschränkt werden. Zum einen kann es sich hier natürlich nicht um eine voll ausgearbeitete Methodologie für die Analyse von bereichsethischen Fragestellungen handeln, sondern nur um eine methodische Skizze. Zum anderen soll es in diesem Papier im Wesentlichen um solche bereichsethischen Fragestellungen gehen, deren Lösung die Implementierung von formellen wie informellen Regeln erfordert.

In many countries around the world, the mechanisms of civil society have become very commonplace. Large companies are under constant pressure from civil society organizations to change their policies, strategies and approaches. The tobacco industry in particular is under heavy pressure in many parts of the world. Smoking has been prohibited in many public as well as private or semi-private areas in a large number of countries. However, while smoking as an addiction seems to be declining in some countries, in others it is not. This paper presents an example of a country (Indonesia) in which smoking is still on the rise. We discuss how mechanisms of civil society are a chance to at least improve the situation and effectively combat a grave social problem.

This book examines the theoretical foundations of order ethics and discusses business ethics problems from an order ethics perspective. Order ethics focuses on the social order and the institutional environment in which individuals interact. It is a well-established paradigm in European business ethics. The book contains articles written by leading experts in the field and provides both a concise introduction to order ethics and short summary articles homing in on specific aspects of the order-ethical paradigm. It presents contributions describing fundamental concepts, historical roots, and the economic, social, and philosophical background of the theory. The second part of the handbook focuses on the theory's application in business, society, and politics, casting new light on an array of topics that loom large in contemporary ethical discourse.​

Contract-based approaches have been a focus of attention in business ethics. As one of the grand traditions in political philosophy, contractarianism is founded on the notion that we will never resolve deep moral disagreement. Classical philosophers like Hobbes and Locke, or recent ones like Rawls and Gaus, seek to solve ethical conflicts on the level of social rules and procedures. Recent authors in business ethics have sought to utilize contract-based approaches for their field and to apply it to concrete business dilemmas. However, the application of contractarianism to management contexts can cause difficulties. Our article discusses this conceptual problem of contractarian business ethics and presents the idea of order ethics as an alternative. Order ethics, as we argue, can make a difference by conceptually bridging the gap between contractarianism and business ethics.

Companies increasingly deploy artificial intelligence technologies in their personnel recruiting and selection process to streamline it, making it faster and more efficient. AI applications can be found in various stages of recruiting, such as writing job ads, screening of applicant resumes, and analyzing video interviews via face recognition software. As these new technologies significantly impact people’s lives and careers but often trigger ethical concerns, the ethicality of these AI applications needs to be comprehensively understood. However, given the novelty of AI applications in recruiting practice, the subject is still an emerging topic in academic literature. To inform and strengthen the foundation for future research, this paper systematically reviews the extant literature on the ethicality of AI-enabled recruiting to date. We identify 51 articles dealing with the topic, which we synthesize by mapping the ethical opportunities, risks, and ambiguities, as well as the proposed ways to mitigate ethical risks in practice. Based on this review, we identify gaps in the extant literature and point out moral questions that call for deeper exploration in future research.

In 2017, the German ethics commission for automated and connected driving released 20 ethical guidelines for autonomous vehicles. It is now up to the research and industrial sectors to enhance the development of autonomous vehicles based on such guidelines. In the current state of the art, we find studies on how ethical theories can be integrated. To the best of the authors’ knowledge, no framework for motion planning has yet been published which allows for the true implementation of any practical ethical policies. This paper makes four contributions: Firstly, we briefly present the state of the art based on recent works concerning unavoidable accidents of autonomous vehicles (AVs) and identify further need for research. While most of the research focuses on decision strategies in moral dilemmas or crash optimization, we aim to develop an ethical trajectory planning for all situations on public roads. Secondly, we discuss several ethical theories and argue for the adoption of the theory “ethics of risk.” Thirdly, we propose a new framework for trajectory planning, with uncertainties and an assessment of risks. In this framework, we transform ethical specifications into mathematical equations and thus create the basis for the programming of an ethical trajectory. We present a risk cost function for trajectory planning that considers minimization of the overall risk, priority for the worst-off and equal treatment of people. Finally, we build a connection between the widely discussed trolley problem and our proposed framework.

Dieser Beitrag widmet sich der Darstellung des systematischen Zusammenhangs des mit dem Aufkommen der Experimentellen Philosophie neu entstandenen Teilbereichs der Experimentellen Ethik mit der spätestens seit den 1980er Jahren wieder populär gewordenen Evolutionären Ethik, einer Teildisziplin des philosophischen Naturalismus. Nach einer kurzen Charakterisierung beider ethischer Teilbereiche wird am Beispiel der metaethischen Frage nach der Objektivität moralischer Urteile dafür argumentiert, dass die partikulären Ergebnisse experimenteller Methoden in der Moralphilosophie erst in einer umfassenderen Perspektive auf menschliches Handeln vollständig interpretierbar werden: Ohne eine rahmenbildende Hintergrundtheorie moralischen Urteilens, wie z.B. die Evolutionäre Ethik, liefert die Experimentelle Ethik nicht mehr als proximate Erklärungen moralischer Urteilsmechanismen. Zweifelsohne sind dies wertvolle Erkenntnisse über die Funktionsweise moralischer Urteilsfindung – ohne Ordnungsrahmen drohen sie jedoch unverbunden nebeneinander stehen zu bleiben. Andererseits beinhaltet gerade die Evolutionäre Ethik empirische Hintergrundannahmen über menschliches moralisches Urteilen, die erst mit den Methoden der Experimentellen Ethik ihre unabdingbare empirische Überprüfung finden können. Diese zwei Teilbereiche der Moralphilosophie stehen daher in enger systematischer Beziehung.

It has recently been proposed that the evolution of human cooperativeness might, at least in part, have started as the cooptation of behavioral strategies evolved for solving problems of coordination to solve problems with higher incentives to defect, i.e. problems of cooperation. Following this line of thought, we systematically tested human subjects for spillover effects from simple coordination tasks (2x2 Stag Hunt games, SH) to problems of cooperation (2x2 Prisoner’s Dilemma games, PD) in a laboratory experiment with rigorous controls to rule out subject confusion or habituation. Supporting the hypothesis that decision mechanisms for cooperation problems are linked with decision mechanisms for coordination, our main finding is that cooperation levels in PD games embedded in a sequence of SH games were significantly increased compared to a baseline sequence consisting only of PDs when subjects played in fixed pairs. No such effects could be found when players were randomly rematched each round. Additional findings include that this spillover effect cannot prevent a decay of cooperation over time, that there is no indication of a reversed effect, i.e. no signs of negative spillovers from failed cooperation to miscoordination, and that subjects self-reported preferences in SH games are prosocial.

This volume explores various aspects of risk taking. It offers an analysis of financial, entrepreneurial and social risks, as well as a discussion of the ethical implications of empirical findings. The main issues examined in the book are the financial crisis and its implications for business ethics. The book discusses unethical behaviour as a reputational risk (e.g., in the case of Goldman Sachs) and the question is raised as to what extent the financial crisis has changed the banks’ entrepreneurial strategy. The book presents an analysis of the reasons leading to the crisis and identifies them as ethical dilemma structures. In addition, it looks at general questions regarding ethical behaviour and risk taking, such as: To what extent does the social embeddedness or abstraction play a role in guaranteeing ethical behaviour? What conclusions can be drawn from institutional or evolutionary perspectives on risk management? Finally, the book discusses further issues that become factors of risk within and between societies, such as work insecurity, corruption or the problem of facilitation payments as a risk in international transactions.

Those who invoke the notion of moral responsibility in ethical discourse seem to be faced with a dilemma. Apparently, they either have to violate the “control principle” which says that nobody can be held responsible for what is beyond one's control. Or they have to concede that in many cases there is a “responsibility void” which means that nobody is responsible. The first option seems unjustifiable. The second renders the concept of moral responsibility useless. This dilemma may be taken to suggest that thinking about moral issues in terms of responsibility is an unproductive way of doing ethics. In our paper we offer a solution which, we hope, can rehabilitate responsibility as a moral concept. It combines order ethics (which is a kind of ethics that primarily focuses on the institutional structure of society) with a recently developed account of group agency

In March 2008, the German Federal Constitutional Court (GFCC) has passed an important, even though preliminary, decision concerning data retention. The GFCC’s decision accepts the storage of data, but greatly restricts their use to serious offenses like murder and organized crime. From an ethical point of view, it is particularly interesting to look at the justification given by the GFCC, which relies heavily on the argument that the “impartiality” (Unbefangenheit) of communication will be thoroughly damaged if feelings of being watched spread in a society. This argument is examined in view of two contrasting theoretical approaches: Discourse ethics and evolutionary contractarian theory.

Throughout its age-old tradition, philosophy has continuously been presented with new challenges. The latest one in this series comes from the experimental disciplines and their methodology: experimental philosophy has, during the last 10 to 15 years, increasingly gained reputation, and it has certainly been a controversial issue. Within this movement, the field of ethics deserves more attention. This article aims to give not a complete overview of, but at least an introduction to, the newly rising field of ‘Experimental Ethics’, the chances it offers, the problems for discussion, and the criticism to be expected.

This paper draws a connection between recent developments in naturalized philosophy of science and the Buchanan research program in economics. Economic approaches in naturalized philosophy of science can be combined to form an economic philosophy of science. After giving an overview of some of these approaches, I lay out the fundamentals of the Buchanan research program. I argue that its main elements are a theory of interactions and a normative foundation in consensus which help to answer some important criticisms of economic philosophy of science.

This volume explores the concept of the honest merchant, taking a broad perspective and covering a wide range of aspects. It looks at the different types of “honest merchant” conceptions originating from different cultures and literary traditions. The book covers Japanese, Islamic, Scandinavian, Russian, German, Spanish, as well as other aspects, and studies different disciplinary backgrounds of the honest merchant, such as philosophical, economic, neuroethical, sociological and literary ones. The concept of the honest merchant has a long tradition in business ethics. In the Hanseatic League and in medieval Italy, the ideal of the honest businessman was taught since the late Middle Ages. It originated during a time when travelling merchants were often regarded with a sceptical eye. The honest merchants of their time however held clear principles in their business and took responsibility for their community. In later times, the religious notions of the concept lost their pivotal place to reason and morality. This book goes beyond the tradition of discussing business ethics in association with concepts from the Hanseatic League and medieval Italy, and puts the central concept of business ethics in a much greater perspective.

The Handbook of Business Ethics: Philosophical Foundations is a standard interdisciplinary reference handbook in the field of business ethics. Articles by notable philosophers and economists examine fundamental concepts, theories and questions of business ethics: Are morality and self-interest compatible? What is meant by a just price? What did the Scholastic philosophers think about business? The handbook will cover the entire philosophical basis of business ethics. Articles range from historical positions such as Aristotelianism, Kantianism and Marxism to systematic issues like justice, religious issues, rights and globalisation or gender. The book is intended as a reference work for academics, students (esp. graduate), and professionals.

This paper extends previous attempts at understanding the nature of organizational integrity and its increasingly important role for companies which, after all, bear a moral and societal responsibility. Interpretations of organizational integrity in business ethics literature incorporate aspects ranging from the behavior of managers and employees to corporate structures and incentive systems. We argue that virtue ethics builds an indispensable framework for understanding the origin of the concept of integrity and transfer these findings to an organizational level. Hence, we first define organizational integrity, and second operationalize it in a closed three-step process, consisting of morally sound corporate commitments, their transparent institutionalization within the company, and their implementation into actions. We consider the main goal of organizational integrity to be of a preventative investment nature. Organizational integrity is a company investment that translates into avoiding fines for potential violations of the law or ethical missteps, as well as an investment in the company’s reputation. In turn, organizational integrity can protect a company from disruptions that can threaten its existence. Defining and operationalizing the concept of organizational integrity provides the foundation for future scientific research and the basis for developing practical guidance for organizations and managers.