CFP: Finance and Social Justice Conference
Date: 3-5 November 2016
Location: University of Bayreuth, Germany
- Adair Turner(Former Chairman of the United Kingdom’s Financial Services Authority and former member of the UK’s Financial Policy Committee, Institute for New Economic Thinking)
- Martin O’Neill(Senior Lecturer in Political and Moral Philosophy, University of York)
Invited Speakers: Continue reading
The Group of Thirty has recently published a report entitled Banking Conduct and Culture. The Group of Thirty is a high-profile think tank covering global finance with members such as Paul Volcker, former Chairman of the Fed; Mark Carney, Govenor or the Bank of England; and Mario Draghi, President of the ECB. As the subtitle indicates, the report is meant as a “call for sustained and comprehensive reform”:
“There must be a sustained focus on conduct and culture by banks and the banking industry, boards, and management. Firms and their leaderships need to make major improvements in the culture within the banking industry and within individual firms.” (p. 11)
A lot about the report is to be recommended. It provides a good overview of current interventions to improve organisational culture in banking. It urges leaders of banks as well as regulators to move beyond lofty value statements, towards a firm integration of an ethical culture into banks. It does so by calling for a “fundamental shift in the overall mindset on culture”, and making ethics count when designing incentive structures, performance management, and promotion paths.
Alas, the report fails at providing a helpful definition of organisational culture. It fails in ways that some very old-fashioned conceptual analysis could have prevented. Continue reading
Pacta sunt servanda – contracts must be kept. This legal doctrine is only acceptable from an ethical perspective if certain conditions in addition to the consent of the contracting parties have been met. These conditions include the requirement that the parties to the contract understand its content; that none of the parties dominates the other; that the background conditions that regulate how difficult it will be for either party to satisfy the terms of the contract should be sufficiently stable and predictable; and that the parties to the contract are identical to the persons bound by it.
The sovereign debt contract common today violate these requirements. Consider Greek debt: The officials in the Greek government and the members of the Greek parliament do not just enter a contract on their own behalf when they decide to issue government bonds, but they force tax obligations on Greek citizens and even their progeny to cover the servicing, and perhaps repayment of the debt. How onerous this tax burden is depends on the economic development of Greece in the next couple of decades, which is neither predictable nor likely to be stable.
Tenure Track Assistant/Associate Professor Economics&Philosophy/Business Ethics, Faculty of Economics and Business, Groningen, The Netherlands
The application deadline is 15 June 2015. For information about the post, click here.
The University of Groningen invites applications for an assistant or associate professor (tenure track) in economics and philosophy/business ethics in the Department of Economics, Econometrics and Finance of the Faculty of Economics and Business. Tenure track positions are eligible for consideration for award of the title of full professor, generally after ten years, depending on merit.
For those who read German : I co-edited a “Stichwort” on ethics in the financial system. It’s mostly sociological work; the paper I co-wrote is on banks who advertise as being “ethical banks”. We’ve done an analysis of what they mean by this.
Ethics in financial services is suddenly a major concern for the most prominent US bank supervisor.
In a speech at the Bank of England on 20 January 2015, Thomas C Baxter, Executive Vice President and General Counsel of the New York Federal Reserve Bank, proclaimed, “At the New York Fed, we have made ethical culture a priority for financial services.”
As tangible evidence of this priority, the New York Fed held a workshop on 21 October 2014, on ‘Reforming Culture and Behavior in the Financial Services Industry,’ in an effort to understand the causes of ethical failures and to develop strategies for improving the ethical cultures of large financial institutions.
Some interesting reflections on growth and what the future might hold by Haldane of the Bank of England. It includes thoughts on patience – which, although never in itself considered one of the cardinal virtues, is sufficiently close to them to raise interesting moral questions…
Joakim Sandberg, Associate Professor of Philosophy at University of Gothenburg, has been selected as Wallenberg Academy Fellow by the Royal Academy of Sciences in Sweden. The fellowship is designed to give stable financial support to the most promising young researchers of all academic disciplines. Sandberg will receive five years of full research funding plus a hefty research budget that is supposed to cover junior associates, workshops and travels. So be on the look out for new junior positions at Gothenburg in the near future!
Sandberg’s research program is called “The Philosophy of Responsible Finance” and deals with foundational issues in financial ethics. The aim is to develop a theory of the division of labor in society which stakes out a more sustainable role for financial agents and markets. The program will also evaluate some of the currently proposed measures for making the financial system more socially responsible. These include changing the bonus system for financial executives, legislation on robotic trade in securities, and a global tax on financial transactions.