TY - CHAP
T1 - Challenging the egoistic paradigm
AU - Bowie, Norman E.
PY - 2001
Y1 - 2001
N2 - Most economists are committed to some version of egoism. After distinguishing among the various sorts of egoistic claims, I cite the empirical literature against psychological egoism and show that attempts to account for this data make these economists' previous empirical claims tautological. Moreover, the assumption of egoism has undesirable consequences, especially for students; if people believe that others behave egoistically, they are more likely to behave egoistically themselves. As an alternative to egoism I recommend the commitment model of Robert Frank. The equivalent of egoism at the organizational level is that business firms seek (should seek) to maximize profits. I present arguments to show that a conscious attempt by managers to maximize profits is likely to fail. A committed altruism is more likely to raise profits. I suggest that a firm should take as its primary purpose providing meaningful work for employees.
AB - Most economists are committed to some version of egoism. After distinguishing among the various sorts of egoistic claims, I cite the empirical literature against psychological egoism and show that attempts to account for this data make these economists' previous empirical claims tautological. Moreover, the assumption of egoism has undesirable consequences, especially for students; if people believe that others behave egoistically, they are more likely to behave egoistically themselves. As an alternative to egoism I recommend the commitment model of Robert Frank. The equivalent of egoism at the organizational level is that business firms seek (should seek) to maximize profits. I present arguments to show that a conscious attempt by managers to maximize profits is likely to fail. A committed altruism is more likely to raise profits. I suggest that a firm should take as its primary purpose providing meaningful work for employees.
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U2 - 10.1016/s1529-2096(01)03011-5
DO - 10.1016/s1529-2096(01)03011-5
M3 - Chapter
AN - SCOPUS:35448973702
SN - 0762308095
SN - 9780762308095
T3 - Research in Ethical Issues in Organizations
SP - 145
EP - 163
BT - Next Phase of Business Ethics
PB - JAI Press
ER -