Archive for the ‘FInance’ Tag

Capitalism and Society

In their groundbreaking paper published by The Center on Capitalism and Society, “Putting Integrity Into Finance: A Purely Positive Approach,” Werner Erhard and Professor Michael C. Jensen discuss their positive model of integrity that links integrity and personal and corporate performance.   The creation of this model reveals a causal link between integrity and increased performance. Through the work of clarifying and defining what integrity is and it’s causal link to performance, this model provides access to increased performance for private individuals, executives, economists, philosophers, policy makers, leaders, legal and government authorities.

“The Center on Capitalism and Society brings together leading scholars in economics, business, finance, and law to study capitalist institutions, their effectiveness, and their weaknesses in order to get some answers to such basic questions about capitalism – its working, its dynamism, and the instability it may cause, its inclusiveness or lack thereof and its role in a democracy.”

Werner Erhard at NBER

 Working Paper by Werner Erhard and Michael C Jensen available at the National Bureau of Economic Research: Putting Integrity Into Finance: A Purely Positive Approach

The seemingly never ending scandals in the world of finance with their damaging effects on value and human welfare (that continue unabated in spite of all the various efforts to curtail the behavior that results in those scandals) argues strongly for an addition to the current paradigm of financial economics. We summarize here our new theory of integrity that reveals integrity as a purely positive phenomenon with no normative aspects whatsoever. Adding integrity as a positive phenomenon to the paradigm of financial economics provides actionable access (rather than mere explanation with no access) to the source of the behavior that has resulted in those damaging effects on value and human welfare, thereby significantly reducing that behavior. More generally we argue that this addition to the paradigm of financial economics can create significant increases in economic efficiency and productivity.