Abstract
Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.
This is a preview of subscription content, log in via an institution to check access.
References
Bassiiry, G. R. and Marc Jones: 1993, ‘Adam Smith and the Ethics of Contemporary Capitalism’, Journal of Business Ethics 12, 621–627.
Bellamy, Richard and Tim Gray: 1990, Herbert Spencer's Liberalism (Routledge, London).
Bishop, John D.: 1995, ‘Adam Smith's Invisible Hand Argument’, Journal of Business Ethics 14, 165–180.
Buckle, H. T.: 1861, History of Civilization in England, Volumes I and II (London).
Cropsey, Joseph: 1977, Polity and Economy(Greenwood Press, Westport, Conn).
Doherty, Gary and Tim Gray: 1993, ‘Herbert Spencer and the Relationship between Economic and Political Liberty’, History of Political Thought 14, 475–490.
Donaldson, Thomas and Patricia H. Werhane, eds.: 1977, Ethical Issues In Business, first edition Prentice-Hall, Englewood Cliffs, NJ).
Etzioni, Amitai: 1988, The Moral Dimension(Free Press, New York).
Francis, Mark: 1978, ‘Herbert Spencer and the Myth of Laissez Faire’, Journal of the History of Ideas 21, 294–299.
Frank, Robert: 1988, Passions Within Reason(Norton, New York).
Freeman, R. Edward: 1994, ‘The Politics of Stakeholder Theory: Some Future Directions’, Business Ethics Quarterly 4, 409–422.
Friedman, Milton: 1962, Capitalism and Freedom(University of Chicago Press, Chicago).
Friedman, Milton: 1976, Adam Smith's Relevance for 1976 (University of Chicago Graduate School of Business Occasional Papers #50, Chicago).
Gray, J. N.: 1982, ‘Spencer on the Ethics of Liberty and the Limits of State Interference’, History of Political Thought 3, 465–482.
Gray, T. S.: 1988, ‘Is Herbert Spencer's Law of Equal Freedom a Utilitarian or JRights-Based Theory of Justice?’, Journal of the History of Philosophy 26, 259–278.
Hausman, Daniel M. and Michael S. McPherson: 1996, Economic Analysis and Moral Philosophy(Cambridge University Press, Cambridge).
Hildebrand, Bruno: 1848, Die Nationaloekonomie der Gegenwart und Zukunft. Frankfort. (Quoted in the Introduction to the 1976 edition of The Theory of Moral Sentiments.)
Hirschman, A. O.: 1977, The Passions and the Interests(Princeton University Press, Princeton).
Hudson, William Henry: 1895, 1996, An Introduction to the Philosophy of Herbert Spencer(Routledge/Thoemmes Press, London).
Knies, Carl G. A.: 1853, Die Politisch Zoekonomie vom Standpunkte der Geschichtlichen Methode. Braunschweig. (Quoted in the Introduction to the 1976 edition of The Theory of Moral Sentiments.)
Lerner, Max: 1937, ‘Preface. Adam Smith’, The Wealth of Nations. Ed. Edwin Cannan (Modern Library, New York).
Mandeville, Bernard: 1731, 1988, The Fable of the Bees. Ed. F. B. Kaye (Clarendon Press, Oxford).
Morrow, Glenn R.: 1926, The Ethical and Economic Theories of Adam Smith(Augustus M. Kelley, New York).
Nozick, Robert: 1974, Anarchy, State, and Utopia(Basic Books, New York).
Paul, Jeffrey: 1982, ‘The Socialism of Herbert Spencer’, History of Political Thought 3, 499–514.
Peel, J. D. Y.: 1972, Herbert Spencer on Social Evolution(University of Chicago Press, Chicago).
Sen, Amartya: 1987, On Ethics and Economics(Basil Blackwell, Oxford).
Simon, Walter M.: 1960, ‘Herbert Spencer and the Social Organism’, Journal of the History of Ideas 21, 294–299.
Smith, Adam: 1759, 1976, The Theory of Moral Sentiments.Ed. A. L. Macfie and D. D. Raphael (Oxford University Press, New York).
Smith, Adam: 1776, 1976, The Wealth of Nations.Ed. R. H. Campbell and A. S. Skinner (Oxford University Press, New York).
Smith, Adam: 1762–1764, 1978, Lectures on Jurisprudence [A] and [B]. Ed. R. L. Meek, D. D. Raphael, and P. G. Stein (Oxford University Press, New York).
Spencer, Herbert: 1851, Social Statics(John Chapman, London).
Spencer, Herbert: 1854, Railway Morals and Railway Policy. Reprinted in Essays, vol. III: 2–112.
Spencer, Herbert: 1857, Progress: its Law and Cause, reprinted in Essays, vol. I: 1–59.
Spencer, Herbert: 1860, The Social Organism, reprinted in the Essays, vol. I: 265–307.
Spencer, Herbert: 1862, First Principles(Williams and Norgate, London).
Spencer, Herbert: 1872, Mr. Martineau on Evolution. Reprinted in Essays. II: 371–388.
Spencer, Herbert: 1873, The Study of Sociology(Williams and Norgate, London).
Spencer, Herbert: 1884, 1982, Manversus the State(Liberty Classics, Indianapolis).
Spencer, Herbert: 1886, The Factors of Organic Evolution. Reprinted in the Essays. I: 389–466.
Spencer, Herbert: 1892a, Essays: Scientific, Political and Speculative. 3 volumes (D. Appleton and Company, New York).
Spencer, Herbert: 1892b, The Principles of Ethics3 volumes (Williams and Norgate, London).
Spencer, Herbert: 1896, The Principles of Sociology3 volumes (D. Appleton and Company, New York).
Spencer, Herbert: 1904, Herbert Spencer: An Autobiography, 2 volumes (Williams and Norgate, London).
Stigler, George: 1971, ‘Smith's Travels on the Ship of State’, History of Political Economy III.
Turner, Jonathan: 1985, Herbert Spencer: a Renewed Appreciation(Sage Publications, Beverly Hills, CA).
Viner, Jacob: 1926, ‘Adam Smith and Laissez Faire’, Adam Smith, 1776–1926. Ed. J. M. Clark, et al. (Augustus M. Kelley, New York).
von Skarzynski, Witold: 1878, Adam Smith als Moralphilosoph und Schoepfer der Nationaloekonomie.Berlin. (Quoted in the Introduction to the 1976 edition of The Theory of Moral Sentiments.)
Weinstein, D.: 1990, ‘Freedom, Rights, and Utility in Spencer's Moral Philosophy’, History of Political Thought 11, 119–142.
Werhane, Patricia H.: 1989, ‘The Role of Self-Interest in Adam Smith's Wealth of Nations’, Journal of Philosophy, 669–680.
Werhane, Patricia H.: 1991, Adam Smith and His Legacy for Modern Capitalism(Oxford University Press, New York).
Werhane, Patricia H.: 1997, ‘Adam Smith's Legacy for Ethics and Economics, Judge Institute for Management Studies Working Paper WP20/97, University of Cambridge.
Williamson, Oliver: 1985, The Economic Institution of Capitalism(Free Press, New York).
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Werhane, P.H. Business Ethics and the Origins of Contemporary Capitalism: Economics and Ethics in the Work of Adam Smith and Herbert Spencer. Journal of Business Ethics 24, 185–198 (2000). https://doi.org/10.1023/A:1005937623890
Issue Date:
DOI: https://doi.org/10.1023/A:1005937623890