Morality vs Business
According to Gauthier, morality has no place in business. When it comes to market transactions, each individual should be guided only by a concern to maximize his or her own self-interest. (a) Reconstruct
Gauthier’s argument for this conclusion, taking care to identify and explain its central premises. Be sure to include as part of your reconstruction
(i) how Gauthier understands the concept of morality and
(ii) the significance of an outcome being ‘Pareto optimal’. (
b) Fukuyama argues that morality does have a role to play in business because trust plays an important role in the operations of an efficient firm.
Explain Fukuyama’s point, using the concept of a ‘transaction cost’.
(c) Fukuyama and Gauthier reach quite different conclusions. But given the premises of his argument, do you think Gauthier ought to disagree with Fukuyama’s conclusion?
State your view and then explain your reasoning.