The Corporation's Place in Society

Abstract

This review essay on Joseph Heath’s Morality, Competition, and the Firm assesses its criticisms of both the shareholder primacy and stakeholder views dominant in business ethics, and evaluates Heath’s preferred alternative – a “market failures” approach to business ethics. It argues that product market competition and the market for corporate control significantly limit the scope for any managerial ethics that sacrifices profits. Thus, a viable business ethics requires re-thinking the ethics of corporate ownership as well.

Keywords: Business ethics, corporations, efficiency

JEL Classification: K22