Ethics, Equity, and Social Justice in The New Economic Order: Using Financial Information for Keeping Social Score
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.Get Access
In the present world order unbridled forces of free market capitalism are frequently cited for much of the social injustice, inequity, and disparity of wealth between the rich and the poor. Although history's verdict in favor of the free markets could hardly be harsher or clearer, it is clear that after the initial wave of triumph, the free market paradigm has developed some cracks in its façade. What marks the trail of such sustained and pronounced move toward free markets in terms of ethics, morality, social welfare and social justice? How does one keep a social score in this seemingly relentless and irreversible move all over the world toward free market capitalism?
In this paper we shall attempt to address these and related questions. Drawing on concepts from organization theory and social philosophy and using publicly available financial information, we shall illustrate how, amidst the myriad and mixed noises, some sense of order and signal can be discerned in addressing issues of equity and social justice. Toward this end, first, we provide a broad contrast between two models of financial markets: the command model and the free market model and proceed to examine publicly available financial information and analyze the trends and patterns with graphical representations using publicly available data from Handbook of International Economic Statistics. Next, we explore the implications of financial performance measures for social welfare and social justice and discuss the social perils of free markets using the Mexican and Asian Financial crises as the focal points. Finally, we present a set of recommendations for smoother structural transition.
- Aharoni, Y.: 1986, The Evolution and Management of State-Owned Enterprises (Ballinger, Cambridge, MA).
- Bathala, C. and A. R. Korukonda: 2003, 'An analysis of social welfare issues in free market environments', International Journal of Social Economics 30(8), 854–866. CrossRef
- Bennett, J. T. and M. H. Johnson: 1979, 'Public versus Private Provision of Collective Goods and Services: Garbage Collection Revisited', Public Choice 34, 55–64. CrossRef
- Boardman, A. E. and A. R. Vining: 1989, 'Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises', Journal of Law and Economics 32(April), 1–36.
- Boycko, M., A. Shleifer and R. W. Vishny: 1993, A Theory of Privatization (Harvard University, Boston).
- Caves, D. W. and L. R. Christensen: 1980, 'The Relative Efficiency of Public and Private Firms in a Competitive Environment: The Case of the Canadian Railroads', Journal of Public Economy 88, 958–976.
- Fernandez, R. B. and L. Schumacher: 1998, 'The Mexican Financial Crisis Of 1994-1995: An Asymmetric Information Analysis', in S. S. Rehman (ed.), Financial Crisis Management in Regional Blocs. (Kluwer Academic Publishers, Boston/Dordrecht/London), pp. 184–208.
- Financial Crises, Causes, and Indicators: A Survey by the Staff of the International Monetary Fund, World Economic Outlook (May 1998): International Monetary Fund, Washington, DC.
- Financial Turbulence and the World Economy: A Survey by the Staff of the International Monetary Fund, World Economic Outlook (October 1998): International Monetary Fund, Washington, DC.
- Galal, A., L. Jones, P. Tandon and I. Vogelsang: 1994, Welfare Consequences of Selling Public Enterprises: An Empirical Analysis. The World Bank (Oxford University Press, Washington, DC).
- Greenwood, J. and S. Ogus: 1992, As summarized in The Economist: Asian Economies: Freedom pays.
- Gupta, N.: 2001, Partial Privatization and Firm Performance: Evidence from India, Working paper.
- Henriot, P. J.: 1989, 'Forgive us our debts' America, December 9, pp. 420–424.
- Korukonda, A. R.: 1999, 'Policy Imperatives for the International Economy and for Financial Markets in the Emerging World Order', International Journal of Value-Based Management 12, 51–67. CrossRef
- Lux, K.: 1990, Adam Smith's Mistake: How a Moral Philosopher Invented Economics and Ended Morality (Shambhala, Boston).
- McKinnon, R.: 1993, 'Financial Growth and Macroeconomic Stability in China, 1978-1992: Implications for Russia and Eastern Europe', The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy (John Hopkins University Press, Baltimore and London).
- Merton, R.: 1968, 'The Matthew Effect in Science: The Reward and Communication Systems of Science are Considered', Science 159(3810), 56–63.
- Mishkin, F. S.: 1996, 'Understanding Financial Crises: A Developing Country Perspective', in Michael Bruno and Boris Pleskovic (eds.), Annual World Bank Conference on Development Economies (The World Bank, Washington, DC), pp. 29–62.
- Mishkin, F. S.: 1998, 'The Mexican Financial Crisis Of 1994-1995: An Asymmetric Information Analysis', in S. S. Rehman (ed.), Financial Crisis Management in Regional Blocs. (Kluwer Academic Publishers, Boston/ Dordrecht/London), pp. 149–181.
- Roth, W.: 2002, The Assault on Social Policy (Columbia University Press, New York).
- World Economic Outlook (October 1996), The Rise and Fall of Inflation: A Survey by the Staff of the International Monetary Fund (International Monetary Fund, Washington, DC).
- Ethics, Equity, and Social Justice in The New Economic Order: Using Financial Information for Keeping Social Score
Journal of Business Ethics
Volume 54, Issue 1 , pp 1-15
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- financial information
- Industry Sectors
- Author Affiliations
- 1. Department of Computer Information Systems, College of Business, Room 240 Sutliff Hall, Bloomsburg University of Pennsylvania, 400 E. 2nd Street, Bloomsburg, PA, 17815-1301, U.S.A.
- 2. Nance College of Business Administration, Cleveland State University, Cleveland, OH, 44115, U.S.A