Corporate Soulcraft in the Age of Brutal Markets

The economic and political arguments for the market principle over alternative forms of economic organization are to my mind irrefutable. It is on the moral level that the perplexing concerns about capitalism center, concerns that have been raised from the beginnings of the industrial era down to the present time. This essay focuses on one major aspect of the ongoing moral test of capitalism: the test of whether our major corporations can both succeed in their profit-making efforts and also serve as one of society’s chief mediating structures that stand, like family, church and community, between the individual and the state. Should the corporation serve not simply as a utilitarian arrangement for the efficient production of high quality goods and services, but also as a moral community that shapes human character and behavior? How can it do so in this age of brutal markets?James Q. Wilson, professor of management at UCLA, has no doubt about the answer. In an article last year, he said: “The problem of imbuing large-scale enterprise with a decent moral life is fundamental.†Corporations “are systems of human action that cannot for long command the loyalty of their members if their standards of collective action are materially lower than those of their individual members.†Capitalists should recognize, he concluded, “that, while free markets will ruthlessly eliminate inefficient firms, the moral sentiments of man will only gradually and uncertainly penalize immoral ones. But, while the quick destruction of inefficient corporations threatens only individual firms, the slow anger at immoral ones threatens capitalism, and thus freedom itself.â€