Steven Scalet

During the short span of a few months in 2008, 14 trillion dollars of highly rated bonds fell into junk status, surprising the global financial system and accelerating an economic decline. The result was the worst fracture of the US financial system since the Great Depression. Credit rating agencies (CRAs) in particular have come under intense scrutiny as a result of this latest disaster, both domestically and internationally, including many congressional inquiries and government investigations. Most of the public and scholarly discussions about CRAs focus on reforming the financial system so that the crisis of the magnitude of the 2008 disaster will not happen again. An important overtone of industry criticisms includes a sense of ethical impropriety on the part of CRAs and ethical uncertainty about the institutional mechanisms that are currently in place. Rarely, however, are the ethics of the industry the explicit subject of analysis. In this article, we discuss the lessons from the policy debates and recent legislation to develop an account of the ethics of the CRA industry.

In the last two decades, there has been a pronounced growth of CSR rating agencies that assess corporations based on their social and environmental performance. This article investigates the impact of CSR ratings on the behavior of individual corporations. To what extent do corporations adjust their behavior based on how they rank? Our primary finding is that being dropped from a CSR ranking appears to do little to encourage firms to acknowledge and address problems related to their social and environmental performance. Specific rankings appear not to have a widespread effect of influencing firms to acknowledge negative CSR events and publicly present plans and actions to address them. Whether firms are well or poorly ranked, they appear to focus on and publicly discuss their “positive” CSR activities. We discuss the wider significance of these results as well as the overall significance of CSR rankings for a global economy.

Morality and Moral Controversies, 10th Edition challenges students to critically assess today's leading moral, social, and political issues. And as a comprehensive anthology, it provides students with the tools they need to understand philosophical ideas that are currently shaping our world. The 10thEditionincludes classic and contemporary readings in moral theory, the most current topics in applied ethics, and updated debates in social and political philosophy. As in the previous nine editions, the materials were selected for balance, timeliness, and accessibility after reviewing a vast range of possible articles from leading scholarly journals, mainstream periodicals, online posts, and book chapters. Hallmarks include carefully edited and philosophically relevant U.S. Supreme Court decisions, compelling readings, and contrasting points of view that reflect a broad ethical and political spectrum. Upon completing this book, readers will be able to: Understand philosophical ideas that are shaping the world today. Apply various philosophical ideas to politics, religion, ethics, economics, personal relationships, medicine, the environment and climate change, warfare, and other areas. Appreciate how to construct, apply, and evaluate basic philosophical arguments. Key updates to the 10th Edition include: Publishing all material in the actual book (in contrast to placing sections online behind a paywall, as was the case in earlier editions with a different publisher). New readings on: autonomous warfare self-driving cars the right to health care technology and privacy the value of democracy racial equality immigration. ethical and political spectrum. Upon completing this book, readers will be able to: Understand philosophical ideas that are shaping the world today. Apply various philosophical ideas to politics, religion, ethics, economics, personal relationships, medicine, the environment and climate change, warfare, and other areas. Appreciate how to construct, apply, and evaluate basic philosophical arguments. Key updates to the 10th Edition include: Publishing all material in the actual book (in contrast to placing sections online behind a paywall, as was the case in earlier editions with a different publisher). New readings on: autonomous warfare self-driving cars the right to health care technology and privacy the value of democracy racial equality immigration. >the right to health care technology and privacy the value of democracy racial equality immigration.

What does the law demand when it requirescitizens to conform to standards ofreasonableness? I propose and defend theview that the law should demand thatcitizens conform their behavior to someactual conduct in society. I contrast thisidea against what might be called the``empty vessel'' view of reasonableness,where the standard is understood tofunction like an empty vessel in the law,allowing courts to use various norms andmoral judgments to determine what seemsreasonable in the circumstances. Theempty vessel account is the more commonapproach for understanding reasonableness,but it leaves obscure whether and howassessments about appropriate conductconnect with facts about citizens' actualconduct. I argue for a ``binocular'' viewthat focuses our attention on actualpractices and thereby establishes howthese standards provide a stable guide toconduct and support the rule of law.

Prisoner's dilemmas can lead rational people to interact in ways that lead to persistent inefficiencies. These dilemmas create a problem for institutional designers to solve: devise institutions that realign individual incentives to achieve collectively rational outcomes. I will argue that we do not always want to eliminate misalignments between individual incentives and efficient outcomes. Sometimes we want to preserve prisoner's dilemmas, even when we know that they systematically will lead to inefficiencies. No doubt, prisoner's dilemmas can create problems, but they also create opportunities to practice the cooperative norms that make market institutions possible in the first place. An ethical market culture, I argue, benefits from the presence of prisoner's dilemmas. I first consider standard approaches for solving prisoner's dilemmas. I then argue for the value of prisoner's dilemmas. Finally, I show the significance of this argument for advocating codes of business ethics.

Prisoner's dilemmas can lead rational people to interact in ways that lead to persistent inefficiencies. These dilemmas create a problem for institutional designers to solve: devise institutions that realign individual incentives to achieve collectively rational outcomes. I will argue that we do not always want to eliminate misalignments between individual incentives and efficient outcomes. Sometimes we want to preserve prisoner's dilemmas, even when we know that they systematically will lead to inefficiencies. No doubt, prisoner's dilemmas can create problems, but they also create opportunities to practice the cooperative norms that make market institutions possible in the first place. An ethical market culture, I argue, benefits from the presence of prisoner's dilemmas. I first consider standard approaches for solving prisoner's dilemmas. I then argue for the value of prisoner's dilemmas. Finally, I show the significance of this argument for advocating codes of business ethics.

Morality and Moral Controversies, 10th Edition challenges students to critically assess today's leading moral, social, and political issues. And as a comprehensive anthology, it provides students with the tools they need to understand philosophical ideas that are currently shaping our world. The 10thEditionincludes classic and contemporary readings in moral theory, the most current topics in applied ethics, and updated debates in social and political philosophy. As in the previous nine editions, the materials were selected for balance, timeliness, and accessibility after reviewing a vast range of possible articles from leading scholarly journals, mainstream periodicals, online posts, and book chapters. Hallmarks include carefully edited and philosophically relevant U.S. Supreme Court decisions, compelling readings, and contrasting points of view that reflect a broad ethical and political spectrum. Upon completing this book, readers will be able to: Understand philosophical ideas that are shaping the world today. Apply various philosophical ideas to politics, religion, ethics, economics, personal relationships, medicine, the environment and climate change, warfare, and other areas. Appreciate how to construct, apply, and evaluate basic philosophical arguments. Key updates to the 10th Edition include: Publishing all material in the actual book (in contrast to placing sections online behethical and political spectrum. Upon completing this book, readers will be able to: Understand philosophical ideas that are shaping the world today. Apply various philosophical ideas to politics, religion, ethics, economics, personal relationships, medicine, the environment and climate change, warfare, and other areas. Appreciate how to construct, apply, and evaluate basic philosophical arguments. Key updates to the 10th Edition include: Publishing all material in the actual book (in contrast to placing sections online behind a paywall, as was the case in earlier editions with a different publisher). New readings on: autonomous warfare self-driving cars the right to health care technology and privacy the value of democracy racial equality immigration.

This book introduces a study of ethics and values to develop a deeper understanding of markets, business, and economic life. Its distinctive feature is its thorough integration across personal and institutional perspectives; across applied ethics and political philosophy; and across philosophy, business, and economics. Part I studies markets, property rights, and law, and introduces normative theories with many applications. ¿Part II examines the purpose of corporations and their responsibilities. Parts III and IV analyze business and economic life through the ethics and values of welfare and efficiency, liberty, rights, equality, desert, personal character, community, and the common good. This Second Edition maintains the strengths of the First Edition ¿ short, digestible chapters, and engaging writing that explain challenging ideas clearly. The material is user-friendly, with an emphasis on a strong theoretical core. Easily adaptable to the instructor¿s teaching, the chapters are separable and can be shaped to the interests of the instructor with suggested course outlines and flexible application to case studies. This text is designed both for coursework in Business Ethics as well as interdisciplinary programs in Philosophy, Politics, Economics, and Law. This Second Edition: Expands presentation of eight normative theories, with increased emphasis on links between these theories and business and economic life Incorporates recent scholarship on shareholder / stakeholder debates about the purpose of corporations, bringing this important topic up to date Includes a new streamlined Preface/Introduction that provides a quick overview of the book before smoothly guiding the reader to the first chapter Uses updated examples and applications for today¿s readers Revamps a useful Appendix, including enhancing the popular primer on ethics Introduces a List of Further Readings at the end of each chapter and notable biographies throughout, directing students to the most promising literature for further research Includes a new ending chapter on the value of an ethical life.