Ethical foundations for a market economy
The Centre for Enterprise, Markets and Ethics (CEME) promotes an enterprise-based economy built upon ethical foundations drawn from the history and values of the Christian tradition.
The financial crisis in 2008 raised serious ethical issues for many people regarding the way in which financial institutions do business and, over recent years, concerns about globalisation, climate change and other environmental issues, poverty, AI and other developments have added to the overall concern about the nature of twenty-first century capitalism. People’s concerns are not just about technical issues of economics and finance but extend to far wider questions of ethics, culture and even theology.
Confidence has been dented in the entire system of private enterprise, capitalism and an enterprise-based economy. This loss of confidence is widespread.
Business is essential to society, creates wealth, and enables both individuals and society to flourish. Despite this, many, including those within business, think the only social contribution of business is through charitable work.
An extract of the speech delivered by Lord Griffiths at the launch of the Centre is available here.
We explore the benefits of a market economy from the perspective of the Christian tradition and we think that there are three propositions around which many people can agree:
A competitive market economy which encourages private enterprise and is subject to the rule of law is not only the most effective way to generate wealth and employment but is also an important foundation for a democratic political order.
While a market economy is superior to other economic systems which have been tried, it is far from flawless. Free market economies left to themselves cannot be relied on to provide solutions to a number of problems. We need to have a better understanding of the human person and of what makes up the common good if we are to tackle them successfully.
If it is to work effectively a market economy requires a degree of trust based on high ethical standards by those engaged in business. These values will not be generated within the market but must come from outside the market. While these values have many sources we believe that the Christian faith within the wider Christian tradition is one important source of such values.
Our approach combines research in business, economics, and theology with a direct engagement with those in business, policy, and of faith (including church leaders). We promote sound ethical behaviour and understanding of the contemporary market economy and its role in broader flourishing.
We have broad interest in:
