| Abstract: |
In general, capitalist countries display sustained growth, dynamism and
innovation, and a high adaptability in response to external shocks. Yet in the
last twenty years discontent over the notorious drawbacks of capitalism –
corporate frauds, corruption, abuses of market power – have grown continually.
In this paper, we argue that no remedy to these difficulties can be found if
ethical dilemmas are not anticipated and addressed at the individual, firm and
economy-wide level. While pro-ethical changes in business regulation would
help, government action alone may not be effective enough. A possible
complementary solution would be to alter the ideological foundations of
capitalism, placing more emphasis on ethical issues. This intellectual change
calls for a reorientation of the social sciences. In particular, to
effectively support decision-makers in the difficult task of integrating the
ethical constraint, economic theory should incorporate a more in-depth
reflection on human goals. |