What’s the Point of Efficiency? On Heath’s Market Failures Approach

This article reviews and criticizes Joseph Heath’s market failures approach (MFA) to business ethics. Our criticism is organized into three sections. First, we argue that, even under the ideal assumptions of perfect competition, when markets generate Pareto-efficient distributions, does not rule out significant harms. Second, show nonideal conditions, MFA either too demanding, if efficiency be attained, or sufficiently goal Pareto abandoned. Finally, that appeal regulations specific moral requirements as a remedy for unlikely safeguard exposes number general worries regarding force MFA. We end this with constructive suggestion on how adjust avoid these problems while preserving its contractualist Paretian spirit.