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Towards an Ethical Wealth of Nations: An Institutional Perspective on the Relation between Ethical Values and National Economic Prosperity

Published online by Cambridge University Press:  12 February 2016

Peter L. Jennings  and
Manuel Velasquez
Peter L. Jennings
Affiliation:
Santa Clara University
Manuel Velasquez
Affiliation:
Santa Clara University
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Abstract:

In this paper we examine how ethical values contribute to national economic prosperity. We extend the concept of an ethical wealth of nations first introduced by Donaldson in which he proposed four categories of ethical values—fairer distribution of goods, better government, ingrained social cooperation, and inculcation of economic duties—that can drive economic performance, but only if citizens ascribe “intrinsic value” to them independent of their economic interests. Our analysis draws on institutional economics and sociology research to show that if ethical values are to drive economic performance, they must also be supported by the institutional fabric of the nation. We embed an expanded set of ethical values in a set of democratic, free market and civil society institutions spanning three sectors of society—political, economic and cultural respectively. We conclude by discussing the implications of our institutional framework for moral education.

Keywords

Ethicsvaluesinstitutionswealth of nationsresponsible leadershipmoral education
Type
Articles
Information
Business Ethics Quarterly , Volume 25 , Issue 4 , October 2015 , pp. 461 - 488
Copyright
Copyright © Society for Business Ethics 2016 

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