The Ethics of Financial Speculation in Futures Markets

Pies, Ingo; Will, Matthias Georg; Glauben, Thomas; Prehn, Sören

doi:10.1142/9789814566926_0024

Cited by 6 publications

(3 citation statements)

References 6 publications

(8 reference statements)

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“…Both manipulative and gambling transactions can be deemed to be unethical from a consequentialist perspective due to the societal cost imposed by introducing false information to the market (Koslowski, 2011). Finally, Pies et al (2013) apply an ordonomic-theoretical approach and conclude that speculation is societally desirable per se and thereby advocate the ethical desirability of agricultural commodity speculation via index funds.…”

Section: Discussionmentioning

confidence: 99%

Does agricultural commodity speculation contribute to sustainable development?

Kleinau

Lin‐Hi

2014

Corporate Governance

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Purpose – This paper aims to conceptually analyse the role of speculation in society to determine whether agricultural commodity index funds, a new form of speculation, contribute to sustainable development. Design/methodology/approach – The theoretical arguments justifying the value of the market economic system for generating sustainable development and the positive contribution speculators make too in this context are elaborated. It is then considered whether the arguments justifying traditional speculation hold for agricultural commodity index funds. Findings – Traditional forms of speculation contribute positively to sustainable development; primarily due to the information they uncover on demand and supply factors which affect prices. Agricultural index funds are a danger to sustainable development, as their transactions are not based on demand and supply factors but simply represent demand for the diversification effect which commodities generate when added to an investment portfolio. Originality/value – The article offers a new approach to assessing whether agricultural index funds contribute to sustainable development. Empirical research has been conducted on whether speculation via index funds has unjustifiably affected commodity prices. However, results of these investigations have been inconclusive due to stark limitations in data availability. By approaching the issue from a conceptual point of view, the article delivers theoretically sound arguments as to why agricultural commodity index funds are likely to have an unjustifiable effect on prices and, hence, are a danger to sustainable development. This has strong implications for finance practice and regulation.

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Section: Discussionmentioning

confidence: 99%

Does agricultural commodity speculation contribute to sustainable development?

Kleinau

Lin‐Hi

2014

Corporate Governance

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“…1 Some book publications include Pies (2008) [How to Fight Corruption], Pies (2009a) [Morality as Heuristics], Pies (2009b) [Morality as a Production Factor], Pies (2012) [Rule Consensus instead of Value Consensus], Pies (2015) [Good Advice Need not be Expensive]. 2 Characteristic contributions include Pies, Hielscher, Beckmann (2009), Pies, Beckmann, Hielscher (2010), Pies, Beckmann, Hielscher (2011), Hielscher, Pies, Valentinov (2012, Valentinov, Hielscher, Pies (2013), , , , Pies, Will, Glauben, Prehn (2015), Beckmann, Pies (2016), Hielscher, Pies, Valentinov, Chatalova (2016), , Will, Pies (2016), Hielscher, Winkin, Crack, Pies (2017), Pies (2017). -For a general overview cf.…”

Section: Introductionmentioning

confidence: 99%

The Ordonomic Approach to Business Ethics

Pies

2017

SSRN Journal

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“…Political instruments aimed at protecting and maintaining small-scale peasant farming carry wide emotional appeal, yet they can present a dysfunctional hindrance on both structural change and productivity in many segments of global agriculture. Essentially similar concerns can be raised with regard to mental models related to GMOs or to speculation with agricultural commodities [ 14 , 15 ]. These models, while seeking to reconcile the reality of industrialized agriculture with sustainability ideals, are apparently impervious to the evidence on how genetic engineering boosts agricultural productivity [ 16 ] and how speculation allows small producers to hedge against price risks [ 15 ].…”

Section: Introductionmentioning

confidence: 99%

Rationalizing the GMO Debate: The Ordonomic Approach to Addressing Agricultural Myths

Hielscher

Pies

Valentinov

et al. 2016

IJERPH

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The public discourse on the acceptability of genetically modified organisms (GMOs) is not only controversial, but also infused with highly emotional and moralizing rhetoric. Although the assessment of risks and benefits of GMOs must be a scientific exercise, many debates on this issue seem to remain impervious to scientific evidence. In many cases, the moral psychology attributes of the general public create incentives for both GMO opponents and proponents to pursue misleading public campaigns, which impede the comprehensive assessment of the full spectrum of the risks and benefits of GMOs. The ordonomic approach to economic ethics introduced in this research note is helpful for disentangling the socio-economic and moral components of the GMO debate by re- and deconstructing moral claims.

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The Ethics of Financial Speculation in Futures Markets

Cited by 6 publications

References 6 publications

Does agricultural commodity speculation contribute to sustainable development?

Does agricultural commodity speculation contribute to sustainable development?

The Ordonomic Approach to Business Ethics

Rationalizing the GMO Debate: The Ordonomic Approach to Addressing Agricultural Myths

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