4 Profit centered paradigm (Political economics) Virtue ethical paradigm Ultimate GoalM O R A LECONOMICSECONOMICSMORALProfit centered paradigm(Political economics)Virtue ethical paradigm(Civil economics)
5 Virtue ethics: underground stream IV. – I. B.C.:Plato, Aristotle, CiceroMiddle ages:Thomas Aquinas,San Antonio, ScolasticsXV. – XVIII. century:Italian Civil economyGenovesi, A.XIX. century:Church’s Social TeachingXX. century:Social market economyCivil societyAlternative economics
6 Profit centered paradigm (Political economics) Virtue ethical paradigm Stefano Zamagni, 2014Profit centered paradigm(Political economics)Virtue ethical paradigm(Civil economics)NOMA principle 1829, Oxford Integration principle,Italy, Lezioni, Genovesieconomy, ethics, politicsSocial welfare: Common good:sum of goods multiplication of goodsn∑n∏aiai= 1ii= 1No reciprocity principle Reciprocity principlehomo hominis lupus homo hominis natus amicusHomo oeconomicus homo reciprocansmarketmarketredistributionredistributionCivil society/reciprocity
7 FINANCIAL TIMES 23 September 2014 „Economics faculties rethink formulas…Since the financial crisis, student groups have attackedeconomic departments for failing to deal with the world’smost pressing social issues, including inequality and globalwarming. They have also criticised professors’ reluctanceto teach a range of economic theories, with coursesinstead focusing on neoclassical models which they claimdo little to explain the 2008 meltdown.…exposure to a wider range of approaches is necessary…more emphasis on economic history…more pluralism in economics…more alternative voices…more openness to [methods from] other social sciences”
8 OIKONOMIA CHREMATISTICS C-M-C’ M-M’ MONTI DI PIETA M-M’(C) Aristotle: PoliticsDaily – Cobb, 1989C-M-C’OIKONOMIACHREMATISTICSM-M’Franciscans, XV. centuryMONTI DI PIETA M-M’(C)
9 Moral value of the human act Consequencialism (Chrematistics), MillIntention (will)(goal)=result, outcomeReason /motivation = „sentiment”, WHYThomism (Oikonomia), Thomas AquinasFair tradeIntention (will); reason (motivation); object; circumstances; concrete goal
10 San Antonio: Summa Moralis, XV. century, Florence „…The whole justification of trade lay in the intentionof the trader.”„The object of gain is that by its means man may providefor himself and others according to their state.The object of providing for himself and others is that theymay be able to live virtuously. The object of a virtuouslife is the attainment of everlasting glory.”In: Jarrett, B., 2007
11 fulfillment „GOOD” HAPPINESS – EUDAIMONIA subjective or objective? - fulfillment by virtues- human relations- spiritual lifeeternal law; natural lawULTIMATE GOODuniversal norms; ethical normsreal „good”fulfillmentapparent „good”human relations
12 HIERARCHICAL ORDER OF THE „GOOD”-S (VALUES) Aristotle: EXTERNAL GOODS (tools) – GOODS OF BODY– GOODS OF SOULUseful good (tool)BeingLiving beingIntellectual,moralliving beingHierarchy Hierarchyof being of valuesEconomic, vital valuesIntellectual, moral valuesClassical philosophyContemplating truthThomas AquinasUltimate goalMaslow, A.Transcendent needsPhysiologicalSafetyBelongingnessSelf-EsteemSelf-ActualizationOrder of the „goods”S.Th. I.q.5., a.6.Pleasant goodMoral goodHierarchy of needsAlford-Naughton , 43.Baritz, 2014
13 Foundational goods=Useful good Excellent goods=Moral good THREE DIMENSIONAL ECONOMYDIMENSIONS DIMENSIONFOUNDATIONAL GOODS EXCELLENT GOODS(infinite values)we strive for them to obtain we strive for themother goods, they are tools for their own sake, they are goalsMoral goodsPleasant goodsUseful goodsInvestment goods,Marketing strategy,Financial means,ProfitNice work Valueenvironment, character ofJob the environment,satisfaction, RecreationCultural value of theeconomic environmentatmosphereReciprocity,Relational goods,Cooperation,Gratuitousness,Generosity,Trust,Solidarity,Justice,Temperance.Market mechanisms are valid in the realm of foundational goods!Goal of economy: common good.Ultimate GoalFoundational goods=Useful goodExcellent goods=Moral goodBaritz,2014; Alford-Naughton, 2001
14 MONEY PLACE AND ROLE OF PROFIT AND MONEY Excellent goods Baritz, 2014 Profit centered paradigm Virtue ethical paradigmPROFIT an end in itself toolutility useful goodrules servesits place: is not on its place, not natural is on its place, useful good, naturalits goal: maximization serve moral goods, common goodmotivation: greed, accumulation, M-M’ concrete, good goal, M-M’(C)chrematistics oikonomiaMONEY ultimate goal servant of the servantsaccumulation is subordinated touse of moneyMONEYExcellent goodsFoundational goodsmoneyBaritz, 2014
15 Homo Oeconomicus Homo Reciprocans Useful goodsHomo Oeconomicusunhappy,missed his/her goalHomo ReciprocansMoral goodsValuesUltimate Goalreduction (two dimensions) whole person, three dimensionsexchange of equivalents, contract exchange of equivalents, contract + valuesreciprocity, trust, solidarity, …non-tuism, (I-IT) tuism, (I-YOU),subjectivist self interest objectivist self interestBaritz, 2013
16 - My self-interest includes the interests of the others, as well. OBJECTIVIST SELF INTEREST (Eric Fromm, 1949)- My self-interest includesthe interests of the others,as well.- Fulfillment with the help of thevirtues.
17 GOAL OF ECONOMY:creating the common good,profit is a tool to reach it.COMMON GOOD:human fulfillment both onthe level of the individualand the community.
18 HUMAN CENTERED ECONOMICS ∑: This wasHUMAN CENTERED ECONOMICSbased onChurch’s Social Teachingand others, like:Amartia Sen, Karl Polanyi, Tibor Scitovsky, R.H. Frank, Amitai Etzioni, Charles Taylor, R.E. Freeman, Francis Fukuyama, Richard Easterlin,Herman Daly, Albert Bandura,Stefano Zamagni, Luigino Bruni,Helen Alford, Michael Naughton,Arjo Klamer, David Lutz, Kenneth Lux,Tim Kasser, Eric Fromm, E.L. Deci, R.M. Ryan, Martin Buber, István Muzslay,Carl Rogers, Abraham Maslow,Antonio Genovesi, XVIII. century
19 Papal encyclicals, documents Leo XIII: Rerum Novarum 1891Pius:XI: Quadragesimo Anno 1931John XXIII: Mater et Magistra 1961John XXIII: Pacem is Terris1963Vatican Council II: Gaudium et Spes 1965Paul VI: Populorum Progressio 1967Paul VI: Octogesima Adveniens1971Sinode of the bishops: De Iustitia in Mundo 1971John Paul II: Laborem Exercens 1981Cong for the doct of faith: Libertatis Nuntius 1984Cong for the doct…: Libertatis Conscientia 1986John Paul II: Sollicitudo rei Socialis 1988John Paul Il: Centesimus Annus 1991Benedict XVI: Caritas in Veritate 2009Pope Francis: Evangelii Gaudium 2013Contemporary authorsAlford, Naughton, Muzslay, Kavanaugh, Cortright, Kocsis, Baranyi, Baritz, Kindler, Tóth, Turgonyi, Williams, Marx, Kennedy, Novak, MacIntyre,Solomon, Bruni, Zamagni, Vertraten, Melé, Argandona, Perez Lopez, Ferrucci, Goodpaster, McCann, Araújó, Lubich, Kasser, Clark, Barrera,Freeman, Cornwall, Egom, Etzioni, Wicks,Parmar, Frey, Kopp, Skrabski, Lenhardt, Beran, Lutz, Lux, McInerny, Oderberg, Pinckaers,Passmore, Porter, Rocha, Goshal, Rosanas, Lecocq, Frontiero, Habisch, Kennedy,…CentersPontifical Council for Justice and Peace; Pontifical University of St. Thomas , Rome; University of St. Thomas, St. Paul, Minesota; John A. Ryan Institute for Chatolic Social Thouht, St Paul Minesota;University of Notre Dame, Notre Dame, Indiana; Leuveni Katolikus Egyetem; Navarrai Üzleti Iskola; Universities: Florida, Huston, Washinton, Portland, New Orlins, San Diego, Fredicton (Kanada), Manila,Osaka, Zurich, Etiopia, Budapest, …
20 Human dignity JUSTICE SOLIDARITY SUBSIDIARITY COMMON GOOD Basic principlesCOMMON GOODHuman dignitySOLIDARITYSUBSIDIARITYJUSTICE
21 REGULATING ROLE OF THE PROFIT CENTESIMUS ANNUS 35, 1991The Church acknowledges the legitimaterole of profit as an indicationthat a business is functioning well.When a firm makes a profit, this means that productive factorshave been properly employed andcorresponding humanneeds have been duly satisfied.But profitability is not the onlyindicator of a firm's condition.In fact, the purpose of abusiness firm is not simply tomake a profit, but is to be foundin its very existence as acommunity of persons whoin various ways areendeavouring to satisfy theirbasic needs, and who form aparticular group at the serviceof the whole of society.Profit is a regulator of the life of a business, but it is not the only one; other humanand moral factors must also be considered which, in the long term, are at leastequally important for the life of a business.John Paul II
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