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Responsible Free Enterprise: What It Is and Why We Don't Have It

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Teaching Business Ethics

Abstract

An economic system of responsible freeenterprise would (i) give individuals and groupsthe freedom to initiate, own and managebusiness undertakings and (ii) insist that suchundertakings be accompanied by a sense ofsocial and moral responsibility which mighthave to be encouraged and enforced bygovernment. Such an economic system is worthstriving for because it (i) respects humanbeings as autonomous, end-seeking beings (i.e.as rational animals) and (ii) it provides thegoods and services needed by the people of asociety.

It is clear, however, that this is not anaccurate description of our present economicsystem. Our enterprises, taken as a whole, arenot fulfilling their social and moralresponsibilities. A prerequisite to creating aresponsible free enterprise system is tounderstand why this is so. Only by alteringcauses can effects be controlled. Properlydiagnosing the current state of affairs makesapparent a prescription – i.e. what isrequired if a responsible free enterprisesystem is to be achieved.

The paper is developed by first of alldocumenting the evidence that substantiates theclaim that the institution of business has notfulfilled its moral obligations. That is,symptoms of moral failure are detailed. Theroot cause of these is then developed as beingan adherence to the metaphysics ofmaterialistic scientism. The moralconsequences of this worldview are examined. The kind of moral guidance positivism hasprovided and the kind of moral guidance it iscapable of providing are discussed.

Common sense realism is proposed as a moresuitable alternative. From this starting pointmoral responsibility is not only notjettisoned, as it is in scientism, but is seento be essential to living a fully human life. The paper concludes by listing theresponsibilities entailed of an enterprise inan economic system guided by moral norms andresponsive to the common good.

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    Jim Wishloff

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Wishloff, J. Responsible Free Enterprise: What It Is and Why We Don't Have It. Teaching Business Ethics 7, 229–263 (2003). https://doi.org/10.1023/A:1025021203317

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