Ethics and Economics: Towards a New Humanistic Synthesis for Business

22 Pages Posted: 25 Nov 2010

Date Written: November 24, 2010

Abstract

The Encyclical-Letter "Caritas in Veritate" by Pope Benedict XVI suggests to advance towards a new conceptualization of the tenuous relationship between economics and ethics, proposing a “new humanistic synthesis”. Where social encyclicals have traditionally justified policy proposals by natural law and theological reasoning, "Caritas in Veritate" gives great relevance to economic arguments. The encyclical defines the framework for a new business ethics which appreciates allocative and distributive efficiency, and thus both markets and institutions as improving the human condition, but locates their source and reason outside the economic sphere. It places a clear accent on the ontological connectedness of the economic and ethical dimensions of human action. It is the proper ordering of means towards the end of integral human development that allows mankind to leave a vicious circle of consumerism and enter a virtuous circle that applies the creativity fostered by markets. This vision implies a new model of business management that integrates considerations of vocation, purpose, and values at a theological level.

Keywords: Caritas in Veritate, Catholic social thought, business ethics, economic efficiency, humanism in management, papal encyclicals

JEL Classification: A13, D64, L21, L31, M14

Suggested Citation

Grassl, Wolfgang, Ethics and Economics: Towards a New Humanistic Synthesis for Business (November 24, 2010). Available at SSRN: https://ssrn.com/abstract=1714645 or http://dx.doi.org/10.2139/ssrn.1714645

Wolfgang Grassl (Contact Author)

St. Norbert College ( email )

100 Grant Street
De Pere, WI 54115-2099

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