Article

Ethics and Economics: Towards a New Humanistic Synthesis for Business

Journal of Business Ethics (Impact Factor: 0.96). 01/2011; 99(1):37-49. DOI: 10.1007/s10551-011-0747-7

ABSTRACT The Encyclical-Letter Caritas in Veritate by Pope Benedict XVI suggests to advance towards a new conceptualization of the tenuous relationship between economics and
ethics, proposing a “new humanistic synthesis.” Where social encyclicals have traditionally justified policy proposals by natural law and theological reasoning alone,
Caritas in Veritate gives great relevance to economic arguments. The encyclical defines the framework for a new business ethics which appreciates
allocative and distributive efficiency, and thus both markets and institutions as improving the human condition, but locates
their source and reason outside the economic sphere. It places a clear accent on the ontological connectedness of the economic
and ethical dimensions of human action. It is the proper ordering of means towards the end of integral human development that
allows mankind to leave a vicious circle of consumerism and enter a virtuous circle that applies the creativity fostered by
markets. This vision implies a new model of business management that integrates considerations of vocation, purpose, and values
at a theological level.

Keywords
Caritas in Veritate
–Catholic social thought–business ethics–economic efficiency–humanism in management–papal encyclicals

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