Jump to ContentJump to Main Navigation
Political StandardsCorporate Interest, Ideology, and Leadership in the Shaping of Accounting Rules for the Market Economy$
Users without a subscription are not able to see the full content.

Karthik Ramanna

Print publication date: 2015

Print ISBN-13: 9780226210742

Published to Chicago Scholarship Online: May 2016

DOI: 10.7208/chicago/9780226210889.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 18 September 2021

Managers and Market Capitalism

Managers and Market Capitalism

(p.168) 9 Managers and Market Capitalism
Political Standards

Karthik Ramanna

University of Chicago Press

This chapter considers the responsibilities of corporate managers in thin political markets. The standard assumption in a capitalist system is that corporate managers’ responsibilities are to increase shareholder profits. But, in their efforts to increase profits, is it acceptable for managers to manipulate the very definition of profit (by gaming accounting rules)? Arguing from the ethical principles that legitimize market capitalism, this chapter concludes that corporate managers have a responsibility to the system as a whole when lobbying in thin political markets. This responsibility trumps their duty to increase shareholder profits – a duty that only applies in competitive processes, which thin political markets are not. The chapter then offers ways in which corporate managers can be brought to act on their responsibilities to the system. These include tangible approaches such as developing accountability metrics for managerial leadership in political processes and intangible approaches such as changing norms around what constitutes acceptable managerial behaviour when lobbying.

Keywords:   agency responsibility, leadership, lobbying, market capitalism, Milton Friedman

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.