Economic Sociology of Capitalist Development
Edited by Yuichi Shionoya and Tamotsu Nishizawa
Chapter 13: Marshall on Economic Chivalry and Business Ethics
13. Marshall on economic chivalry and business ethics Kenji Fujii 13.1 INTRODUCTION Marshall’s advocacy of economic chivalry has been conventionally evaluated as trivial decorations which have no relation to his theoretical work. Many writers have ascribed it to his predilection for ‘pious asides and prim moralisings’ typical of late Victorians.1 This chapter is an attempt to argue that the prevalent evaluation is erroneous because too naive an image is imposed on Marshall. We show a theoretical connection between economic chivalry and his theory of the ﬁrm. We start from an identiﬁcation of Marshall’s view of a ﬁrm in the next section. Utilizing the concept of context-dependent recognition, we propose to identify a ﬁrm as one of social contexts which consist of shared knowledge and values. Then, in the third section, we discuss the role of an entrepreneur in Marshall; he required an entrepreneur to lead in morality as well as in knowledge. In the fourth section, the role of economic chivalry is discussed. Although economic chivalry is often misunderstood as mere preaching, we argue that it is to be understood as a latent mechanism which helps the chivalrous ﬁrms to develop the faculties of human beings. 13.2 CONTEXT-DEPENDENCY OF A FIRM 13.2.1 Context-Dependent Recognition Economists have been accustomed to regard perfect competition as a reference point because ‘perfect rationality’ is considered one of the indispensable conditions for economics. But, instead of assuming perfect rationality, many economists nowadays are inclined to assume ‘bounded rationality’. Although there are diﬀerent meanings...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.