Honorable Business: A Framework for Business in a Just and Humane Society

by James R. Otteson

Business has a bad name for many people. It is easy to point to unethical and damaging behavior by companies. And it may seem straightforward to blame either indivuduals or, more generally, ruthless markets and amoral commercial society.
In Honorable Business , James R. Otteson argues that business activity can be valuable in itself. The primary purpose of honorable businesses is to create value-for all parties. They look for mutually voluntary and mutually beneficial transactions, so that all sides of any exchange benefit, leading to increasing prosperity not just for one person or for one group at the expense of others but simultaneously for everyone involved. Done correctly, honorable business is a positive-sum activity that can enable flourishing for individuals and prosperity for society.
Otteson connects honorable business with the political, economic, and cultural institutions that contribute to a just and humane society. He builds on Aristotle's conception of human beings as purposive creatures who are capable of constructing a plan for their lives that gives them a chance of achieving the highest good for humanity, focusing on autonomy and accountability, as well as good moral judgment. This good judgment can enable us to answer the why of what we do, not just the how. He also draws on Adam Smith's moral philosophy and political economy, and argues that Smithian institutions have played a significant role in the remarkable increase in worldwide prosperity we have seen over the last two hundred years. Otteson offers a pragmatic Code of Business Ethics, linked to a specific conception of professionalism, and defends this Code on the basis of a moral mandate to use one's limited resources of time, talent, and treasure to provide value for oneself only by simultaneously
providing value to others. The result is well-articulated parameters within which business can be an acceptable-perhaps even praiseworthy-activity.

Genres: Nonfiction, Business

250 pages, Hardcover

Published February 27, 2019

About the author

James R. Otteson is an American philosopher and political economist. He is the Thomas W. Smith Presidential Chair in Business Ethics, Professor of Economics, and executive director of the BB&T Center for the Study of Capitalism at Wake Forest University.

Reviews

[Ronald J. · Rating 4 out of 5]

“Many people believe that business activity is morally suspicious.” If that’s true, than “giving back” isn’t enough, we should prohibit it altogether. The author lays out a code of ethics: Honorable Business: not driven by greed, fear, or lying, but by mutual respect (and voluntary cooperation). This will allow individuals and societies to create the ultimate goal of human life—per Aristotle—eudaimonia. This is not merely happiness but a higher purpose, a flourishing. I liked the author’s criticisms of how most business ethics is taught, largely by academics that have no experience in the business world. I do disagree with the author that business is a “profession,” and I don’t believe thinking it is would raise the level of honorable business (there’s a lot of dishonor in professional ethics). Ethics is ethics; there’s no such thing as business ethics. There’s no one here but us people, and ethics applies to all of human behavior, in any realm. Otteson lays out the Hierarch of Moral Value:

1. We want a just and humane society
2. A just and humane society depends on a variety of social institutions, including political, economic, moral, cultural, and civic institutions
3. Included in those required social institutions is a properly functioning market economy.
4. A properly functioning market economy requires honorable business.
5. Honorable business includes industries, firms, and individual businesspeople creating value.

Otteson relies on moral philosophers such as Adam Smith, David Hume, among others to make his case. Wealth is not zero-sum, a particular pernicious belief held by many people, even many businesspeople. Smith was preoccupied with wealth creation—not the causes of poverty—and how to help the poor. Business is the only institution that can create wealth at a scale to relieve millions from bone-crunching poverty. One could say the book is a bit too long, but it’s a good contribution to the morality of capitalism. I would say Michael Novak’s book, Business as a Calling is a similar work, and one I’ve drawn on to teach ethics to professionals. Also, George Gilder, Rabbi Daniel Lapin, and Robert Sirico have excellent works defending the morality of enterprise and free markets.

[Maximas Forrester · Rating 5 out of 5]

One of my favorite books. I am a smarter person for having read it, and I believe it is a fantastic read for any business student. The author occupies a unique niche in discussing philosophy and economics, and I now firmly believe that a more detailed discussion on ethical business needs to be had. His Aristotelian view of meaning for business was fascinating, and I loved his take on CSR. It's just a good read, and I think anyone could benefit from it.

[Whitney Smith · Rating 4 out of 5]

Had to read this book for my Purpose & Ethics class. I thought it was well-written and I liked the philosophy in it. I think I will refer back to it time and again.