On economics and business ethics

Abstract

Economics has an impoverished view of virtuous human behaviour in general, and corporate social responsibility in particular. We claim that this is due to a particular, albeit currently dominant approach to economics. This approach focuses on the pursuit of wealth through efficient allocation of scarce resources by ‘rational’ utility‐maximizing economic agents and institutions, such as markets, firms and states, in the exclusive pursuit of ‘efficiency’. This results in an ethic‐free and often inimical approach to virtuous behaviour. However, a different approach to economics, which focuses on sustainable global resource creation and allocation, asserts virtuous responsible behaviour to be part and parcel of economic analysis and performance.