Free markets with sustainability and solidarity facing the challenge

Free Markets with Solidarity & Sustainability FREE MARKETS with Solidarity & sustainability Facing the Challenge Edited by Martin Schlag & Juan A Mercado The Catholic University of America Press Washington, D.C Copyright © 2016 The Catholic University of America Press All rights reserved The paper used in this publication meets the minimum requirements of American National Standards for Information Science—Permanence of Paper for Printed Library Materials, ANSI Z39.48-1984 ∞ Library of Congress Cataloging-in-Publication Data Names: Schlag, Martin, editor | Mercado, Juan Andrés, 1967– editor Title: Free markets with solidarity and sustainability : facing the challenge / edited by Martin Schlag and Juan Andrés Mercado Description: Washington, D.C : The Catholic University of America Press, 2016 | Includes bibliographical references and index Identifiers: LCCN 2015039958 | ISBN 9780813228433 (cloth : alk paper) Subjects: LCSH: Free enterprise—Religious aspects—Catholic Church | Free enterprise—Moral and ethical aspects | Solidarity | Social responsibility of business Classification: LCC HB95 F737 2016 | DDC 261.8/5—dc23 LC record available at http://lccn.loc.gov/2015039958 To Professor Domènec Melé, for all he has done to renew business ethics Contents List of Tables and Figures ix Introduction Freedom, Solidarity, and Sustainability: Philosophical and Theological Roots Martin Schlag and Juan Andrés Mercado Part I Constructing Theoretical Foundations One Love, Sustainability, and Solidarity: Philosophical and Theological Roots Russell Hittinger Two Leaving behind the Model of Positivism and Utilitarianism for Economic Activity: Toward a Humanistic Approach Domènec Melé Three The Morality of the Market from a Theory of Personal Action Javier Aranzadi Four Economic Theory Meets Human Nature: How Anthropological Views of the Human Person Shaped Economic Theory in Western History John Larrivee Five Free Markets with Caritas: A Transformational Concept of Efficiency Bruce Baker Six Freedom as the Call of Being: Restoring the Foundations of Ethical Enterprise Jim Wishloff vii 19 32 52 70 92 113 viii Contents Part II Assessing the Encyclical Tradition Seven Justice, Charity, and the Political Order: Assessing the Encyclical Tradition Richard J Dougherty 135 Eight Freedom and Solidarity: A Catholic Model of Economic Organization Wolfgang Grassl 155 Nine Catholic Social Teaching on the Economy: Pope Benedict XVI’s Legacy Martin Schlag 178 Part III Offering Practical Models and Education Ten Economic Efficiency and Solidarity: The Idea of a Social Market Economy Jörg Althammer 199 Eleven Are Work–Family Practices Socially Responsible? Differing Perceptions in Portuguese Enterprises Fátima Carioca 217 Twelve Global Capitalism and Values-Based Businesses: The Case of Cooperatives and Benefit Corporations Patrice Flynn 239 Thirteen Epistemology in Business Education: Challenging the Ideologies Kevin Jackson 256 Bibliography 277 Contributors 303 Index 307 Tables and Figures Table 4-1 Metaphysical Views and Attitudes toward Capitalism 87 Table 8-1 Three Sectors of Social Life 167 Table 10-1 Notions of Solidarity in Divergent Social Settings 205 Table 13-1 Facets of Business Leadership for Sustainability 273 Figure 8-1 Change in Models of Society 171 Figure 11-1 Integration of Work–Personal–Family Life 219 Figure 11-2 Social Responsibility—Linking Business and Society 221 Figure 11-3 Base Survey on Work–Family Culture 226 Figure 11-4 Overall Perception Gap of Work–Family Culture 228 Figure 11-5a Work–Family Life Policies Perception Gap 229 Figure 11-5b Family-Supportive Environment Gap 229 Figure 11-6 Staff Perceptions versus Organization Perception of Work–Family Culture 231 Figure 11-7 Staff Perceptions versus Organization Perception of Work–Family Culture (with CSR classification) 231 Figure 12-1 The Market System ix 242 Bibliography 301 Triana, Pablo “Why Business Schools Are to Blame for the Crisis.” Bloomberg Business, July 13, 2009 Uertz, Rudolf Vom Gottesrecht zum Menschenrecht: Das katholische Staatsdenken in Deutschland von der Französischen Revolution bis zum II Vatikanischen Konzil (1789– 1965) Paderborn: Schöningh, 2005 UNESCO “United Nations Decade of Education for Sustainable Development: Reorienting Programmes.” http://www.unesdoc.unesco.org/images/154093e.pdf United Nations “United Nations Launches 2012 International Year of Cooperatives.” UN Cooperative News http://www.social.un.org/coopsyear U.S SIF Foundation, the Forum for Sustainable and Responsible Investment 2014 U.S Report on Sustainable, Responsible and Impact Investing Trends Washington, D.C., 2014 Vatican Council II 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Teaching and Economic Law.” Journal des Economistes et des Etudes Humaines 13, no (2003): 329–51 ——— The Church and the Market: A Catholic Defense of the Free Economy Lanham, Md.: Lexington Books, 2005 Yakovlev, Alexander The Fate of Marxism in Russia New Haven, Conn.: Yale University Press, 1993 ——— A Century of Violence in Soviet Russia New Haven, Conn.: Yale University Press, 2002 Yang, Nini “Work-Family Conflict and Supervisor Support.” Eastern Academy of Management Best Paper Proceedings (1993): 174–77 Yunus, Muhammad Creating a World without Poverty New York: PublicAffairs, 2009 ——— Building Social Business New York: PublicAffairs, 2011 Zaleski, Pawel “Tocqueville on Civilian Society: A Romantic Vision of the Dichotomic Structure of Social Reality.” Archiv für Begriffsgeschichte 50 (2008): 260–66 Zizioulas, John D Being as Communion London: Darton, Longman and Todd, 1985 Zubiri, Xavier Dynamic Structure of Reality Translated by N. R Orringer Urbana: University of Illinois Press, 2003 Contributors Jörg Althammer, born in 1962, is a full professor of economic and business ethics at the Catholic University of Eichstätt-Ingolstadt (Germany) He received his PhD in economics in 1992 and his venia legendi in economics in 1998 He was appointed visiting professor in Passau (1999– 2001) and full professor of economics and social policy in Bochum (2002– 2007) He is coauthor of one of the leading textbooks on social policy and has authored or edited more than ten books on ethics and social policy He is a member of the scientific council of the German Bishops Conference and was scientific advisor of the German Ministry of Family Affairs Javier Aranzadi is a professor of economics at Universidad Autónoma de Madrid, Spain Dr Aranzadi has studied at Institut für Wirtschaftspolitik at the University of Cologne and has been visiting scholar at Georgetown University His main areas of interest are philosophical foundations of economic systems, Austrian School of Economics, and business ethics His latest book is Liberalism against Liberalism Reverend Dr Bruce Baker, PhD (theological ethics, University of St Andrews, Scotland), has a rare combination of academic and professional qualifications in business, science, and theology As an entrepreneur, he cofounded and managed a high-technology company and earned five patents for his inventions in X-ray vision technology He then served as a general manager at Microsoft prior to attending Fuller Seminary (MDiv) and being ordained to pastoral ministry in the Presbyterian Church (PC-USA) His academic qualifications include degrees also from Stanford (MBA) and the California Institute of Technology (BS, Applied Physics) Dr Baker currently teaches ethics, moral leadership, and theological foundations of business and economics at Seattle Pacific University Fátima Carioca is dean and a professor in the academic area of human factors in the Organisation at AESE Business School, Lisbon, Por- 303 304 Contributors tugal She earned her Doctor of Business Administration from Manchester University She holds an MSc in engineering systems and computers from Instituto Superior Técnico and a master’s degree in marriage and family from Navarra University Formerly an executive, sShe served for more than twenty years in the telecommunications and software industries at PT Telecom and Edisoft She is a member of the Business Ethics National Technical Committee Her areas of research and interest are work–life balance, people management, labor relations, and corporate social responsibility Richard J Dougherty is the chairman of the Department of Politics at the University of Dallas, in Irving, Texas, and the director of the Center for Christianity and the Common Good He is a contributor to St Augustine through the Ages and The Oxford Guide to the Historical Reception of Augustine and has written and lectured widely on Catholic political thought, Catholic higher education, and American political thought Dr Dougherty is completing a manuscript on prerogative power and the American presidency Patrice Flynn is the Morrison Professor of International Studies with the Bolte School of Business at Mount St Mary’s University, the second oldest Catholic institution of higher education in the United States She holds an MA (economics) from the University of Chicago and a PhD (economics) from the University of Texas at Austin Dr Flynn is a world traveler who has produced an extensive publication record on global capitalism, labor markets, and civil society, including two edited volumes and more than fifty research papers and articles Previous positions held include labor economist at the Urban Institute, vice president of research at Independent Sector, and senior vice president for administration and finance at Effat University Wolfgang Grassl holds degrees in philosophy and economics and serves as a professor of business administration at St Norbert College (De Pere, Wisconsin), where he also holds the Dale and Ruth Michels Endowed Chair in Business His research focuses on consumer behavior, marketing strategy, business ontology, and Catholic social thought He has authored or edited six books and more than 120 articles and reviews in the fields of business studies, economics, philosophy, and intellectual Contributors 305 history, most recently the monographs Culture of Place: An Intellectual Profile of the Premonstratensian Order and Property Russell Hittinger is the William K Warren Chair of Catholic studies at the University of Tulsa, where he is also a research professor in the School of Law His books have been published by the University of Notre Dame Press, Oxford University Press, Columbia University Press, and Fordham University Press, and his articles have appeared in the Review of Metaphysics, the Review of Politics, and several law journals (American and European) His current work, The Popes and the Modern Caesars: Magisterial Teachings on the State, 1789–2005., will be published by Yale University Press He serves on two Pontifical academies In 1994 he was elected a full member of Pontificia Academia Sancti Thomae Aquinatis On September 8, 2009, Pope Benedict XVI appointed Professor Hittinger as an ordinarius in the Pontifical Academy of Social Sciences Kevin Jackson has published research papers in many top-tier journals, among them Business Ethics Quarterly, Journal of Business Ethics, Brooklyn Journal of International Law, Harvard Journal of Law and Public Policy, and Law and Philosophy Currently, Dr Jackson is a professor of law and ethics at Fordham University in New York City, as well as a senior fellow with the Witherspoon Institute He also holds the Daniel Janssen Chair of Corporate Social Responsibility at Université libre de Bruxelles in Belgium Professor Jackson has taught at Georgetown University, Peking University, and Princeton University John Larrivee is an associate professor of economics at Mount St Mary’s University Although his background is in labor economics and poverty, in recent years he has begun to focus on Catholic social teaching and questions regarding the morality of markets This has included reviews of Caritas in Veritate and of the labor section of the Compendium of the Social Doctrine of the Church A chapter examining how the Christian criticism of capitalism which misses the materialist basis behind many secular critiques often paradoxically reinforces that materialism and undermines Christian witness and the role of civil society (in Back on the Road to Serfdom, Thomas Woods, ed.) provided the starting point for the consideration of how different views of the human person shaped criticisms of the market 306 Contributors Reverend Domènec Melé is professor and the holder of the Chair of Business Ethics at IESE Business School, University of Navarra Over the past twenty-five years, he has researched and written extensively on business ethics, business in society, and Catholic social thought He has authored and coauthored several books, including Business Ethics in Action, Management Ethics, and Human Foundations of Management and coedited Human Development in Business: Values and Humanistic Management in the Encyclical Caritas in Veritate and Humanism in Economics and Business: Perspectives of the Catholic Social Tradition Professor Melé serves on several editorial boards of peer-reviewed journals and has been guest or co-guest editor of six special issues of the Journal of Business Ethics Juan Andrés Mercado received his PhD in philosophy at the University of Navarre He has taught ethics and philosophy as an adjunct professor at Universidad Panamericana, worked as an assistant professor of history of modern philosophy at the Pontifical University of the Holy Cross, and is currently an associate professor of the same subject and full professor of applied ethics at the same university Dr Mercado is the cofounder (with Martin Schlag) of Markets, Culture, and Ethics, an interdisciplinary research center at the Pontifical University of the Holy Cross He also serves as a visiting professor at IPADE Business School Monsignor Martin Schlag completed his university studies in jurisprudence at the University of Vienna and in theology at the Pontifical University of the Holy Cross He began his professional career as an assistant professor for Roman law and Austrian constitutional law at the University of Vienna and the University of Innsbruck He is currently a professor of social moral theology at the Pontifical University of the Holy Cross, where he cofounded Markets, Culture, and Ethics, an interdisciplinary research center of which he serves as director Jim Wishloff is an associate professor and an award-winning teacher at the University of Lethbridge in Edmonton, Alberta, Canada He has a BSc (engineering) and an MBA from the University of Alberta and a PhD from Case Western Reserve University His publications include articles in the Journal of Business Ethics, the Journal of Religion and Business Ethics, the Journal of Business Ethics Education, Teaching Business Ethics, the Review of Business, and the Social Justice Review Index Acting person, 11, 52, 56n17, 65 Acxiom, 108 Albert, Michel, 33 Almsgiving, 13 Ambrose, 12, 15 American Constitution, 2, 144n38 Annas, Julia, 54 Aquinas, Thomas, 14, 24n9, 48, 115, 121n39, 125n52, 135, 140n20, 142n29, 161n14, 162, 163n22, 167, 176n51, 272 See also Saint Thomas, 22–25, 135 Aristotle, 8n17, 48, 52, 53n5, 56, 79, 115, 121, 142, 272 Authenticity, 271, 272n60, 273–74 Bartlett, Christopher, 62, 65 Benedict XVI, 5, 8, 15, 46, 47n48, 50n57, 70, 71, 86, 91, 92, 98, 100, 103, 104n25, 114, 115n8, 118n21, 120n36, 121n40, 123n43, 124n47, 124n49, 125n50, 125n53, 127n60, 127n64, 128, 129n70, 135n1, 136, 141–42, 143n31, 149, 155n1, 156–57, 161, 163–64, 168–73, 174n48, 175, 178–79, 183–89, 191, 193–96, 305 Benefit corporation, 239–40, 243, 252–55 Benevolence, 8–10, 15n29, 22–23, 31, 79–80 Bentham, Jeremy, 39–40 Bernard of Clairvaux, 27 Big Data, 107n31, 108 Bismarck, Otto von, 9, 27 Black, Max, 35, 38n28 Bottom-of-the-pyramid, 265 Boulding, Kenneth, 166 Brooks, Arthur, 9, 263n28 Bruni, Luigino, 95n4, 102–3, 161n13, 191n34, 262n27 Bureaucracy, 13–14 Business, 5n12, 11, 15, 44, 50, 52nn3–4, 53n7, 58, 61, 64n41, 67, 93, 97, 104–5, 107–9, 111, 117–19, 129–31, 148, 160, 161n15, 164, 168–70, 172–74, 176, 179–80, 182–83, 191, 193, 196, 217–18, 220–22, 224, 228, 233–36, 238–41, 243–75, 303–4, 306; cooperative, 240, 243–44, 246–49, 252 Business education, 170n42, 183, 256–57, 259, 261, 264–66, 268–75 Business ethics, 52n3–4, 109n36, 180, 182n11, 238n53, 261, 271n57, 272, 274n65, 303, 306 Business model, 104, 107, 111, 169n39, 170, 239–40, 243–44, 265 Capaldi, Nicholas, 33 Capital, 45, 117, 128–30, 166n27, 179n5, 192, 212, 245, 248–49, 264–65, 268–69; social, 45, 166n27, 212, 264–65, 268–69 Capitalism, 2n3, 3, 32–33, 50, 52, 58n25, 62n38, 81, 84–85, 87–90, 94n3, 97n10–11, 99, 101, 116–20, 127, 155–57, 162, 172–73, 179, 181, 184, 189–91, 192n37, 196, 209, 220, 239–43, 249, 254–55, 261n25, 266, 304–5; democratic, 3, 156, 162, 181, 192n37; global, 97n11, 157n3, 239–41, 243, 249, 255, 304 Catechism of the Catholic Church, 13, 30n17, 117n18, 122n41, 135n1, 146–48, 162n16, 162n20 Catholic Social Doctrine (CSD), 20, 22, 28n13, 117, 126, 138 Catholic Social Teaching, (CST) 2, 7–8, 13, 15, 46, 135, 139, 146, 155–57, 160, 161n13, 162, 163n23, 164, 168, 170–79, 180n6, 183–84, 187, 189, 194, 208, 211n23, 305 Central planning, 71, 86, 209, 241 Charity, 8–9, 11, 13–15, 21, 24–25, 93, 97, 104, 125–28, 135–37, 141–42, 149, 153–54, 170, 179n3, 183, 187, 194–95, 205–7, 214– 15, 245, 250, 263n28; social, 8–9, 21 Chesterton, Gilbert Keith, 307 308 Index Choice-Point, 108 Christian humanism, 9, 12, 34, 46–51, 120, 128, 178, 183, 196 Christianity, 7, 9–12, 22, 75, 81, 116, 124–25, 130, 136, 304 Chrysostom, John, 12 Church, 5–9, 12–13, 23, 26–29, 30n17, 30n19, 61n33, 90, 99, 117n18, 122n41, 125, 127, 135–37, 139–41, 143n33, 145n39, 146–47, 148n51, 149n54, 150–56, 162n16, 162n20, 170, 175, 179–80, 183–91, 194, 208n21, 217n1, 241, 303, 305 Civil economy, 95n4, 102n21, 103n24, 157, 161, 164, 168, 170, 173–75, 189, 191, 193, 195 Civil society, 21, 30, 71–72, 90, 156–61, 163–67, 169, 171–72, 174–75, 177, 186, 189, 195, 250, 263, 304–5 Collectivism, 13, 20, 85–86, 145–47 Common good, 1–2, 4, 13, 15, 20, 22–28, 30–31, 42, 49–50, 55, 88, 96, 101, 104–5, 112, 118–19, 126, 128, 130, 137–38, 147, 149–50, 154, 160n12, 161, 163n23, 168, 182, 188, 189n30, 192, 204, 207, 234–35, 238n53, 245, 262–63, 304 Communion, 21, 29–30, 48, 100, 127, 129, 170, 262n27 Communism, 70, 72, 83, 85–88, 90–91, 116, 184 Community Reinvestment Act of 1977, 109 Compassion, 12, 14, 207, 264, 271 Compendium of the Social Doctrine of the Church, 30n19, 150, 208n21, 217n1, 305 Competition, 57, 58n25–26, 98, 105, 118, 138, 140, 165, 192, 204, 209, 249 Comte, August, 34 Consumerism, 181 Contract, 19n1, 20, 32, 98, 141, 161, 167, 200, 210, 213, 251, 253, 260, 263, 274n65 Cooperation, 15, 21, 23, 26, 32, 53n7, 61n32, 75, 89, 159, 161, 166, 177, 202n10, 204, 210, 245, 263, 269 Cooperative movement, 169–70, 240, 244 Cooperatives, 169–70, 239–40, 243–49, 252, 255 Coordination, 60–64, 67, 69, 155, 201, 210, 242 Corporate social responsibility, 46n47, 217–18, 220–24, 220nn12–13, 221nn14–15, 223n24, 227, 227n37, 231–37, 232n41, 235n46, 236, 237n48, 237n50, 265–66, 304–5 Cotrugli, Benedetto, 191 Cox, Harvey, 99n15 Creativity, 50, 59, 61, 63–66, 155, 172–73, 175, 264, 271, 273–74 Crisp, Roger, 54 Csikszentmihalyi, Mihaly, 63 Cultural crisis, 6, 179 Culture, 6, 15, 24, 33, 45, 49, 52–61, 63–65, 68–69, 97, 116, 126, 154, 169–70, 172, 174–75, 178, 181, 187, 189n30, 190, 219n9, 222–28, 230–31, 233–34, 236–37, 258, 262n27, 263, 269, 272n62, 274, 305, 306; of death, 187 Cura personalis, 263–64, 274–75 Dante, 26–27 Debt, 13, 19, 45, 104, 109–10, 180, 260; public, 13, 45, 180 Deep ecology, 271, 272n59 Development, 14, 48–49, 55–56, 58n25, 60nn30–31, 62n37, 65–66, 69, 74, 83n28, 95, 100, 104, 109, 121–22, 128, 131, 138, 141, 142n30, 155, 160–61, 168–71, 174–77, 179, 183–84, 186, 189, 192, 203, 209, 212, 217–18, 234–35, 246, 250, 256, 268–69, 270n50, 306; integral human, 48, 155, 160–61, 175–77, 179n3, 183 Dickens, Charles, 244 Dignity, 13, 15, 25n11, 41, 48–50, 55, 94, 96, 100–101, 108, 110n37, 111, 127, 129–30, 149, 153, 156, 163n23, 168, 171, 180, 182–84, 196, 207–8, 217, 237–38, 245, 252, 262–63, 264n31 Dirksen, Cletus F., 101, 102n20 Division of labor, 57, 74, 76, 84, 204, 242 Division of power, 188 Douthat, Ross, 45 Duns Scotus, John, 98 Durkheim, Émile, 201–3, 205, 209, 211 eBureau, 108 Economic institutions, 32, 189 Index 309 Economics, 5–6, 33, 34, 35n10, 35nn13–15, 37n26, 39, 42n41, 53, 55n16, 57, 58n25, 59–62, 67–69, 71, 76, 80n21, 83, 86, 93n1, 94–96, 98, 100–3, 113, 138–40, 155, 158, 159n8, 161n15, 165–66, 168n37, 180, 182– 83, 189, 191–93, 195, 218, 237, 241, 257–63, 271, 303–5 Economy, 3n7, 4–6, 11, 32–34, 41, 50, 52, 55, 57, 61n33, 63, 65, 67–69, 78, 82, 83n30, 87, 90–91, 94n3, 95, 96n9, 98–99, 101–3, 109n34, 110n38, 111, 113–14, 116, 127, 146n43, 154–57, 160–61, 164, 166, 168, 170–75, 178–83, 188–89, 191–96, 199–201, 203–4, 208–11, 213, 215, 238–39, 241, 243, 245–47, 257, 258n10, 258n12, 261, 262n27; political, 41, 83n30, 95, 99n15, 101–3, 113–14, 116, 193, 195 Engels, Frederick, 76n10, 83, 84n31 Enlightenment, 39, 74, 154, 158, 191 Enterprise, 4, 9n18, 11, 22–23, 50, 63n39, 113–14, 118, 120, 127–30, 152, 169–70, 172, 176, 179n5, 196, 204, 217, 225n26, 240, 244, 246, 250, 251n22, 253, 259n15, 260, 262, 264–67, 274 Entitlement, 13–14 Entrepreneurship, 55, 57n20, 58–59, 61–62, 66n47, 67, 69, 131, 169, 174, 180, 196, 238 Environment, 129–30, 183, 185, 199–200, 205–6, 222–24, 227–29, 234n45, 237n51, 239, 253, 257, 268, 272n62 Epicurus, 39–40 Epistemology, 48, 51, 71–72, 182, 193, 256, 257n5 Epsilon, 108 Equality, 19, 75–76, 82–83, 84n31, 116, 247, 263 Ethical relativism, 185 Ethics, 2, 6, 9, 11, 14n28, 15, 33, 35n10, 35nn13–15, 37n26, 39n32, 46, 49, 52nn3– 4, 53–55, 56n18, 57nn20–21, 58, 61n32, 62nn37–38, 64n41, 68–69, 71–74, 76– 78, 86, 88, 93n1, 95–96, 104, 109n34, 109n36, 115, 125, 130, 135n1, 142, 160n11, 162n17, 168n37, 178, 180, 182–83, 187–89, 192, 194, 210, 234, 238n53, 257, 260n19, 261, 264, 271–73, 274n65, 303–6; firstperson, 49; institutional, 187–88; person- centered, 11; social, 2, 104, 178, 188, 210; Socratic, 11 Europe, 3, 19, 20n1, 28, 34, 70, 179, 240–41, 245, 249, 265n38 Evangelization, 5–7, 190, 195 Excellence, 22, 30, 52, 53n7, 55–56, 57n21, 58n23, 61n32, 63n39, 67–69, 162–63, 273–74 Facebook, 108 Faith, 7–8, 12, 21, 47n48, 48, 78, 80–81, 87, 94–96, 120, 125, 151nn66–67, 153, 180, 184–86, 188, 190, 194–96, 264n31 Family, 15, 19, 23–24, 27–30, 60, 72, 84n31, 99, 126, 129–30, 143, 146, 148, 161, 170, 172, 194, 203n15, 205, 207–8, 212–14, 217–19, 221–31, 237–38, 241, 247, 250, 274, 303–4 Fascism, 86–88, 149 Federal Trade Commission, 106 Feuerbach, Ludwig, 82, 83n30 Finance, 189, 247, 250n21, 254–55, 260n19, 261, 304 Financialization, 104, 109–10, 172 Firm, 11, 43, 52, 55–56, 60–62, 64–69, 74, 107, 114, 119, 126, 128–30, 179, 210, 217– 18, 220n13, 221–22, 224–27, 232–38, 240, 246, 248, 252–55, 260–61, 266–67 Flourishing, 5, 7, 10–11, 34, 48–49, 51, 74, 96, 101, 111, 128, 142n30, 161–62, 174, 177, 183, 190, 217, 262 Francis of Assisi, Francis, Pope, Fraternity, 19, 83, 92, 104, 160, 164, 166–67, 191, 194–96 Freedom, 1–2, 5–6, 9n18, 12, 15, 32, 42, 49–50, 52, 55, 60, 62–63, 88, 96n9, 109, 111n40, 113–14, 116, 117n17, 123, 125, 131, 147, 150, 155, 158–60, 162, 174, 176–77, 182, 184, 186, 194, 208, 238, 241–42, 245, 261n25, 273 Freeman, R Edward, 52n3, 58, 67, 221n14, 236, 257n7, 259n15, 262n26 Free market, 3, 5, 13–14, 32–33, 43, 49, 86, 88, 92–96, 99, 103–4, 106, 110n38, 111, 120, 138, 155–56, 176, 181, 189n30, 191n31, 199, 203, 209, 217 310 Index Free trade, 199–200, 210 Friedman, Milton, 55n16, 67, 117, 261n25 Friendship, 4, 8n17, 20n2, 21–22, 24, 131, 142, 156, 185, 190, 201 Geach, Peter, 42, 46–47 Gift, 1n1, 4, 14, 91–93, 97–98, 104, 107, 111, 116, 118, 120–21, 125–26, 130–31, 141, 160, 161n15, 162–63, 171, 178–79, 183, 191, 196, 205, 215 Gilkey, Langdon, 34 Gleaning, 111 God, 2, 7–12, 14, 21–22, 30, 47, 49, 70, 73– 74, 76–77, 81–83, 86–88, 99–100, 114–15, 117, 120–25, 127–28, 130–31, 142n29–30, 150, 151n66, 154, 157, 160, 163–64, 167–68, 177, 190, 194, 208, 251 Google, 107–8, 269 Ghoshal, Sumantra, 52, 62, 65–66, 260 Government, 2–4, 9, 13–14, 29, 46n47, 65, 75, 86, 88–89, 94, 109, 143–44, 158–60, 162, 165–66, 169, 174, 177, 180–81, 186, 188, 215n32, 220, 245, 248–49, 251, 269 Grace, 14, 23, 107, 124–25, 151, 153, 162–63, 172, 175, 190–91 Gratuitousness, 92–93, 97, 100, 104, 110, 127, 164, 171, 177, 183, 191, 196 Greed, 91, 118, 180, 268, 274 Greenspan, Alan, 109 Growth, 89, 108, 110, 116, 120, 123, 129, 131, 173n46, 175, 177, 179, 184, 212, 224, 233, 235, 249, 255, 267 Gundlach, Gustav, 9, 138, 143 Hanley, Ryan P., 77–78 Happiness, 1, 11, 36, 40–42, 45–46, 54n9, 79–80, 95n4, 121, 124, 128, 150, 152, 161– 62, 166n30, 182–83, 187, 191, 193, 262–63, 268n46; public, 95n4, 191, 193, 262–63 Hausman, Daniel M., 35, 37n26 Hayek, Friedrich August von, 2n3, 55n16, 60n29, 66, 94, 159, 176, 200, 202, 213n28, 257n8 Hedonism, 40, 273; psychological, 40 Hermeneutics, 190 Hobbes, Thomas, 39, 48, 55, 75, 156, 158–59 Homo economicus, 55n16, 65, 100, 102n20 Human action, 5, 34, 39, 53–56, 60n29, 64, 67–69, 71, 102, 158n7, 160n9, 176, 183, 187 Human dignity, 13, 48–49, 55, 94, 96, 100–1, 108, 110n37, 111, 129, 149, 156, 163n23, 168, 180, 182–83, 207, 217, 245, 262–63 Humanism, 7, 9, 12, 34, 46–51, 62n37, 81n24, 115, 120, 128, 178, 183, 196, 208; Christian, 9, 12, 34, 46–51, 120, 128, 178, 183, 196; exclusive, 7; secularist, Human nature, 49, 52–53, 70–73, 75–76, 78– 79, 83, 84n31, 86–87, 90, 94, 101, 102, 116, 121, 125, 143, 158, 185n16, 188, 258, 262 Human rights, 20, 30, 43, 45–46, 54, 183, 185–86, 252, 270 Humility, 9, 194, 264n31 Hutcheson, Francis, 39, 75 Hypernorms, 274 Ideology, 7, 46, 94, 114, 116–17, 156, 265, 268 Individualism, 3–4, 10, 25n11, 60n29, 86, 88, 91, 110, 146n43, 160, 264, 268–69, 272n62, 274 Introduction, 40, 55n16, 106, 185n16, 193n38, 240 Invisible hand, 42, 72, 77, 91–96, 104, 112, 192 Jesus Christ, 5, 12, 124 See also Jesus of Nazareth, 124 John Paul II, 5, 20–21, 29, 30n16, 47, 50, 85n32, 96n9, 111n40, 116n13, 116n15, 117, 120n29, 120n31, 124n48, 126n58–59, 127n65, 128n69, 131, 141–42, 146n44, 147, 148n50, 150n63, 151, 154n77, 155n1, 156, 161, 164, 168, 176, 184, 189, 238n52, 245 John XXIII, 114n2, 115n7, 116n9, 172, 180, 181n8, 185 Justice, 8–9, 13–15, 20, 22–31, 41n37, 42n41, 46, 55, 60nn30–31, 71, 82, 85, 87, 89, 93n1, 97–99, 101n18, 107, 118–19, 123, 127, 135–37, 140–42, 144n38, 149, 150n59, 150n64, 152–54, 158n5, 180, 185, 188, 192–95, 199–200, 202n10, 208, 216, 217n1, 265, 268, 270, 272n62, 306; commutative, 26, 30, 98, 141; legal, 25, 27, 30; Index 311 social, 8–9, 14, 28, 30–31, 71, 82, 85, 87, 119, 200, 216, 265 Kaletsky, Anatole, 94, 239, 241n4 Kant, Immanuel, 55, 196 Kanter, Rosabeth M., 218n6, 219, 237n49 Kaufmann, Franz-Xaver, 213 Kazan, Elia, 149n56 Kersting, Wolfgang, 203–4, 207 Keynes, John Maynard, 6n13, 257n8 Khurana, Rakesh, 259, 261 Kirzner, Israel, 58–59 Kohler, Thomas, 143n32–33, 146n43 Koinonia, 21, 23, 25, 26n11, 28, 31 Kolakowski, Leszek, 76n10, 82 Labor, 57, 74, 76, 84, 118–19, 129, 139, 175, 192, 204, 210–11, 242, 245n11, 247, 252, 255, 304–5 Labor unions, 210–11 Laity, 8, 13, 153n71, 180, 184, 186 Law, 2, 4, 9, 12, 14, 19, 22, 24–25, 27, 29, 32, 50, 56, 60, 73–74, 75n6, 76, 79n17, 83, 86–89, 99, 107, 123–25, 128, 130, 136–37, 139–42, 144n38, 151, 154, 180–81, 185–86, 188, 190, 192–93, 201, 209, 211, 213n27, 236, 248–49, 254, 258, 261, 269, 305–6; Eternal, 22, 27; moral, 73–74, 83, 86–89, 123–25, 151, 154; natural, 2, 9, 75n6, 76, 79n17, 139–40, 185–86, 188, 193; Roman, 19, 201, 306 Leadership, 130, 234, 246, 250, 262, 273, 275, 303 Leo, 12 Leo XIII, 7–8, 21, 116, 120n30, 136, 139, 151, 155, 168, 172, 185, 187 Liberalism, 55, 56n17, 71, 78, 88, 154, 157– 58, 162, 164, 176, 188, 303 Libertarian, 12, 72, 87–88, 146n43 Liberty, 1–2, 12, 13n26, 19, 39n32, 54–55, 83, 94n2, 114, 123, 144, 159, 160n10, 188–89; ordered, 1–2 Lipitor, 105–6 Locke, John, 39, 48, 84n31, 96, 158–59, 176, 192 Love, 8, 11–12, 14, 19–28, 31, 47n50, 74, 78, 96n9, 111n40, 115, 121–31, 157, 163–64, 166n29, 167, 170, 187, 190, 194, 264n31, 271; self-, 78, 84n31 Lubac, Henri de, 81n24, 82 MacIntyre, Alasdair, 22, 39n29, 52n4, 54, 64n41, 68 Malthus, Thomas, 95 Margalit, Avishai, 13–14 Market, 3–5, 11, 13–14, 32–34, 39, 41–45, 48–50, 52, 55–57, 58n25, 59–61, 62n38, 64–65, 66n45, 71, 74, 77–79, 80n21, 86–89, 92–101, 103–11, 113, 119–20, 138–40, 155–64, 166–67, 169, 171–78, 181, 187, 189n30, 191–92, 195, 199–201, 203–5, 208–11, 213–17, 234, 238–43, 246n14, 250, 252, 254–55, 258, 260, 262–63, 267, 269, 272n62, 304–6 Market economy, 3n7, 4, 11, 32–34, 41, 50, 52, 55, 57, 65, 67–69, 95, 98–99, 172, 181, 191, 199–201, 203–4, 208–11, 213, 215, 238; social, 3n7, 181, 199–200, 208–11, 213, 215 Marriage, 23–24, 26–30, 42, 161, 185, 304 Marx, Karl, 11, 71–72, 76n10, 82–86, 91, 172 Marx, Reinhard, 189n28 Materialism, 72, 82–85, 87, 91n40, 110, 117, 181, 264, 268, 305; practical, 181 McPherson, Michael S., 35, 37n26 Meeks, M Douglas, 99 Mercantilism, 192, 241 Metaphysics, 71–72, 120, 121n38, 125, 162, 176n52, 192 Mill, John Stuart, 39–40, 48, 78n16, 96, 101n19, 159, 244 Mises, Ludwig von, 55n16, 56n17, 60n29, 64n42, 158n7, 159, 160n9 Monetization, 104, 107–8 Money, 4, 54, 67, 88n37, 117–20, 148, 178, 181n10, 182, 189, 191, 242, 246, 248–50, 252, 255, 267, 269 Moral philosophy, 33, 35n13, 48, 96, 101, 192–93 Moran, Peter, 65–66 Mortgage, 93n1, 109–10 Mother Teresa of Calcutta, 45 Müller-Armack, Alfred, 209 312 Index Napoleonic Code, 19 Nell-Breuning, Oswald von, 7, 8n16, 9, 138, 143, 146, 199, 208n20, 211n24 Neoscholasticism, 7, 188 New evangelization, 5–6, 195 Nietzsche, Friedrich, 81–82, 86 Norman, Edward, 145, 149 North, Douglas, 56–57 Nothelle-Wildfeuer, Ursula, 183n13, 201 Novak, Michael, 2n2–3, 3–5, 13n26, 181n9, 192 O’Boyle, Edward J., 102n20 Officium intermedium, 185 Open society, 97n11, 200, 209 Ordoliberalism, 3n7, 211 Owen, Robert, 244 Pareto optimization, 97, 99 See also Pareto optimality, 98–99 Patent, 104–7, 119, 303 Paul VI, 21, 150, 152, 155, 184 Pesch, Heinrich, 13, 211n24 Pfizer, 105–7 Philanthropy, 171, 245 Piedra, Alberto, 74, 75n6, 76, 78–80 Pity, 13–14, 179, 245 Pius XI, 21, 28, 116n12, 118, 119n22, 120n35, 127n63, 136–43, 144n37, 145, 146n42, 147n49, 148, 151n65, 152–54, 163, 245 Pius XII, 2, 7–8, 188 Plato, 1, 11, 48, 79, 193, 272 Pluralism, 184 Politics, 4, 6, 26, 54, 71–72, 74, 84, 100, 135n1, 142n29, 150, 158–59, 161n15, 175, 182–83, 185n16, 195, 218, 236n47, 237, 243, 257n7, 269n48, 304 Popper, Karl, 209 Popular sovereignty, 188 Positivism, 11, 32–37, 39, 46, 48–51, 259 Postmodernism, 190 Poverty, 9, 83n29, 101, 179n5, 243–44, 250n20, 267n45, 268, 305 Pragmatism, 99 Prahalad, Coimbatore K., 265 Profit, 26, 44, 58n25, 59, 62n37, 65, 67, 70, 84, 93–94, 96–97, 105–11, 117–20, 128, 131, 143, 160, 164, 166–67, 169–72, 176, 179, 191n34, 194, 196, 221, 232, 238–42, 246, 252–55, 260, 262–63, 265–66, 268–69 Prosperity, 3, 43–44, 55, 65, 69, 116, 141, 245, 263 Publius, 143 Putnam, Hilary, 35–37, 39n31 Quine, Willard Van Orman, 35–36 Rand, Ayn, 11, 72, 85, 86n33, 87–88 Rationalism, 154, 188, 264n32 Rauscher, Anton, 138n12, 201n4 Rawls, John, 41, 55, 158n5 Reagan, Ronald, 33 Reciprocity, 48, 156, 160–61, 163–64, 166– 67, 170–71, 177, 191, 204–6, 210, 263, 268 Relationality, 123n42, 167, 191 Religion, 7, 10–11, 19, 34n7, 36n20, 42n41, 45n45, 47–49, 72, 82, 87, 91, 99n15, 109n34, 122, 124, 136, 149, 166, 184–86, 194, 203n15, 243, 274, 306; axial, 10–11 Rhonheimer, Martin, 54, 67 Romanticism, 188 Röpke, Wilhelm, 258 Rose, David C., 33n2, 43–44 Sandel, Michael J., 4, 178–79, 181 Sartre, Jean-Paul, 272 Saul, John Ralston, 265 Schall, James, 153 Schumpeter, Joseph A., 58n25, 74n4, 76n10, 78 Scientific asceticism, 95–96, 103 Scientism, 34, 259, 264 Searle, John R., 35, 38 Second Vatican Council, 6–8, 186, 189 Secularization, 7, 9–11 Sedláček, Tomáš, 95, 96n8, 102n20 Self-interest, 2, 40, 42–43, 58, 72, 77–79, 88, 181, 193, 202, 265, 268 Sen, Amartya, 35, 37, 60, 184, 269n47 Sennett, Richard, 97, 174n49 Separation thesis, 62n37, 65n43, 257 Short-termism, 264, 274 Index 313 Sin, 7, 12, 75, 89, 120, 163, 190, 192, 194 Slote, Michael, 54 Smith, Adam, 4, 11, 38, 42, 71–72, 74–81, 85, 91, 94–95, 159, 192–93, 241, 243, 262 Social cohesion, 22, 98, 199, 203n15, 208–9, 212–13 Social institution, 32, 41, 52, 55–57, 59–60, 65, 68–69, 128, 147, 157, 162, 209, 213n27, 222 Socialism, 3, 13, 20, 58n25, 76n10, 87–88, 116–17, 120, 137, 154, 156–57, 162, 200n2, 209; national, 87–88 Social principle, 8, 13, 15 Social question, 21, 162, 187 Solidarism, 13, 211 Solidarity, 1, 4, 11–15, 19–25, 29–32, 49, 54, 93, 96n9, 98, 100, 104, 110, 111n40, 113, 120, 126–27, 150, 155–56, 160, 163, 167– 68, 176, 194–95, 199–216, 244, 248–250, 254–55 Solomon, Robert C., 36n17, 53, 57–58, 61, 68 Soros, George, 97 Spencer, Herbert, 203, 205 State, 7, 9, 11, 13, 19n1, 20, 27–30, 54, 88, 99, 116, 118, 136, 143, 144n38, 145–47, 149, 156–64, 166–69, 171, 173–77, 181, 185–86, 188, 191–92, 195, 200, 205–8, 211–16, 221, 234, 240, 247–48, 254, 272, 305 Sterling, Stephen, 270 Stewardship, 240, 254–55, 261, 270 Stiglitz, Joseph E., 95n5, 107n30, 110, 269n47 Subsidiarity, 15, 31, 126–27, 143–50, 153, 156, 161, 163n23, 168, 173, 208, 245, 248–49, 254–55 Sustainability, 1, 19, 92–93, 96, 103, 107, 111, 120, 179, 182n11, 217–18, 233–35, 255–57, 262–65, 268–74 TargusInfo, 108 Taylor, Charles, 7, 9–10, 273 Thatcher, Margaret, 33 Third way, 157, 162, 175, 184, 209 Tocqueville, Alexis de, 4, 144, 165 Trinity, 123n42, 124, 157, 163–65, 167–68, 172, 174 Triple bottom line, 221n14, 233, 239–40, 246, 253 Turner, Adair, 93n1 Unemployment, 94, 118, 152, 214, 243 United States, 3, 28, 41, 45, 157–58, 165, 183, 218n6, 237n49, 240–41, 245–47, 250, 252–54, 265n38, 304 Utilitarianism, 11, 32–34, 39–51 Value-laden, 264 Vienna School, 34 Virtue, 1, 3–4, 9, 12–14, 19–21, 25, 27–28, 39n29, 42n39, 46n46, 47n53, 50–51, 52n1, 53–55, 56n17, 62n37, 64n41, 65n43, 67–69, 74, 76–79, 89, 93, 102, 114, 120, 123, 125, 127, 131, 135–36, 157, 172, 175–76, 180–81, 194, 201, 237–38, 249, 262–64, 268, 270, 272–73 Virtuosity, 271–73 Vogelsang, Karl von, Wage, 119, 129, 139, 148, 152, 188, 211–12, 243–44; living, 129, 139 Wealth, 3–4, 10, 55, 61, 65, 67, 69, 76n7, 77, 93, 101, 116–17, 119, 127, 148, 179–81, 183, 189, 195, 224, 232, 236, 239–40, 241n5, 242, 253–55, 262, 268n46, 269, 274 Welfare, 13, 41, 117, 119, 149, 171, 173, 200, 205–8, 211–16, 220, 240, 254–55, 260, 262n27 Wicksteed, Philip H., 101n19 Williamson, Oliver E., 32 Wisdom, 9, 80, 93–94, 97, 100, 102–4, 112, 115, 129, 143, 151, 155, 176, 190, 194, 264n31, 271, 273, 275 Wojtyła, Karol, 47, 53, 85n32 Woods, Thomas E Jr., 139n19, 191n31, 305 Work and family life, 217 See also WFL, 217–18, 221–28, 230, 232–33, 236–37 Yunus, Muhammad, 250, 265 Zamagni, Stefano, 95n4, 102–3, 191n34 Zizioulas, John D., 100n17 Free Markets with Solidarity and Sustainability: Facing the Challenge was designed in Bembo with Jenson display type and composed by Kachergis Book Design of Pittsboro, North Carolina It was printed on 60-pound Natures Book Natural and bound by Thomson-Shore of Dexter, Michigan .. .Free Markets with Solidarity & Sustainability FREE MARKETS with Solidarity & sustainability Facing the Challenge Edited by Martin Schlag & Juan A Mercado The Catholic University... Juan Andrés, 1967– editor Title: Free markets with solidarity and sustainability : facing the challenge / edited by Martin Schlag and Juan Andrés Mercado Description: Washington, D.C : The Catholic... Culture (with CSR classification) 231 Figure 12-1 The Market System ix 242 Free Markets with Solidarity & Sustainability Introduction Freedom, Solidarity, and Sustainability Philosophical and Theological