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A Normative Model of Professionalization: Implications for Business Ethics A NORMATIVE MODEL OF PROFESSIONALIZATION: IMPLICATIONS FOR BUSINESS ETHICS by Sareh Pouryousefi A thesis submitted in conformity with the requirements for the degree of Doctor of Philosophy Graduate Department of Philosophy University of Toronto © Copyright by Sareh Pouryousefi 2013 ii A Normative Model of Professionalization: Implications for Business Ethics Sareh Pouryousefi Doctor of Philosophy Department of Philosophy University of Toronto 2013 Abstract To say that there is a lack of consensus on the essence of professionalization is an understatement. For almost a hundred years, scholars have disagreed about the traits, attributes, processes, temporal sequences, and socio-historical structures that fundamentally define professions. My dissertation draws on an information theoretic framework to provide a novel analysis of the role of professions in society. According to my normative model, professions are trust-creating and trust-preserving institutional structures, which respond to market failures that arise due to information asymmetries in the market for professional services. Given the limitations on market-based and governmental solutions to information asymmetries, I argue that norms should be viewed as a fundamental transaction-cost minimizing professional governance mechanism. What are the moral obligations of the professional? The implicit morality of the market for professional services involves achieving the end of economic efficiency. Accordingly, professional moral obligations involve a set of deontic constraints that promote Pareto-efficiency in response to information asymmetries. After providing a conceptual framework that outlines iii the relation between professional and ordinary morality, I argue that social institutional roles sometimes permit, to a limited extent, what would otherwise be forbidden. Given certain institutional structures and safeguards, professional roles can, thus, be sui-generis sources of moral obligation. The culmination of my arguments about professions and professional morality is a contribution to the business ethics literature. Since the early twentieth century, scholars have argued over whether the managerial role may be theorized using the normative and theoretical trappings of the professions. A survey of the management literature reveals that an adequately nuanced analysis of the professions and the normative nature of professionalization has yet to be put forward. To fill this gap, I provide a normative model of management professionalization that is sensitive to the socially beneficial nature of professional work while avoiding glorified altruistic characterizations. I argue that managers in private economic entities are professionals, properly understood, since in addition to external market-oriented incentives, they typically appeal to internal, trust-creating norms to promote Pareto-efficiency within the firm. Professionalism thus involves following efficiency imperatives despite the prevalent moral hazard problems surrounding the managerial role. iv Acknowledgments First and foremost, I am grateful to my supervisor, Joseph Heath, for his excellent mentorship and advocacy. He has been a tireless supporter of my research, reading countless chapter drafts, and providing comprehensive and insightful comments. I could always count on Joe to send me lightning-quick email replies, to be generous with his time and frank about his opinions, and to prioritize my best interests. I am indebted to Joe for his relentless commitment to my success, and for challenging me to think through the philosophical depth of the problems I sought to address in my dissertation. He has been a model teaching mentor, and attentive to the institutional dynamics surrounding me as a female, non-native English-speaking philosopher. I learned from Joe to muster “the will to one thing,” to take the social sciences seriously, and when in doubt, to “say something interesting”. I also owe thanks to others at the Department of Philosophy at the University of Toronto – to Margaret Opoku-Pare, Mary Frances Ellison, and Suzanne Puckering for their amazing administrative support; to Donald Ainslie, Amy Mullin, and Arthur Ripstein (during each of their terms as chair) for ensuring that I had a first-rate graduate experience, and for providing me with support when I asked for it; to Frank Cunningham for his guidance through my coursework year; to Wayne Sumner for setting an example for me as a professional philosopher, and for serving as my internal examiner; to David Dyzenhaus for holding my hand as I gained my research footing, and for being a steady source of inspiration; and to Arthur Ripstein, who alongside David, served as my reader. Arthur and David provided excellent advice and unfailingly prompt feedback on my drafts, for which I am very grateful. Their penetrating criticisms have made this a better thesis. Along with Joseph Heath as my supervisor, I could not have had a stronger dissertation committee. I am indebted to my external examiner, Wayne Norman, for his kindness and his advice, and for the thoughtful comments in his detailed appraisal of this dissertation. Thanks also to Rose Jones and Joseph Heath, and to the post-docs and graduate students at the University of Toronto’s Centre for Ethics, where I was a Graduate Associate. The bright and beautiful Trinity College surroundings, the interesting talks and colloquia, and the supportive reading groups and workshops all played an important role in my education. v In addition to my formal committee members, I have been fortunate to meet faculty members at other institutions who have taken an active interest in my work. I am indebted to Jeff Frooman (University of New Brunswick) for his mentorship and support, and for introducing me to the intellectual community at the Society for Business Ethics; to Dirk Matten and Andy Crane (York University) for their teaching mentorship and their warm support during my visit at the Schulich Centre of Excellence in Responsible Business; to Wes Cragg and the staff at the Canadian Business Ethics Research Network for generous research and professional development support throughout my PhD; to Thomas Beschorner (University of St. Gallen) and the Transatlantic Doctoral Academy for fruitful research advice and stimulating international workshops; and to Jeffery Smith (University of Redlands) for his insightful comments on my research. I owe special thanks to Parviz Shahriari – the shahriar (king) of mathematics in Iran – for being my first and most influential mentor; to Susan Gardner (Capilano University) for converting me to philosophy; to my undergraduate advisor, Ray Jennings (Simon Fraser University) who got me excited about logic, and who had the foresight to prepare me for an academic career before I knew I wanted to pursue one; to Mark Winston (Simon Fraser University) and the Semester in Dialogue for ingraining in me the importance of thinking critically and independently; and to my instructors at the University of Toronto Judo Club, especially Sensei Jorge Comrie, for teaching me the art of maximum-efficiency-minimum-effort – being expertly thrown, arm-barred, and choked allowed me to forget about the dissertation in between bowing in and out of the dojo. The support of my friends was instrumental throughout the dissertation writing process. Thanks to Florence Ballard, Lana Kuhle, Ian Drummond, Susanne Mueller, and Kristine Smitka. I’m also grateful for inspiring conversations with my talented Philosophy Department colleagues Stephen Thierman, Eran Tal, Doug MacKay, Farshid Baghai, Lauren Bialystok, and Patrick Turmel. Thanks to my parents Sholeh Nouri and Hamid Pouryousefi – for staying strong in the old country, revolution and war and all, during the first 17 years of my life, and for their love and support as I strive to be everything I had not known I could be: independent, unburdened, and unafraid. Above all, my greatest debt is to my partner and fellow harvester, Stephen Fraser Thierman. Steve has been the source of unflagging emotional support, inspiration, happiness, vi perfect espressos, excellent cocktails, and gourmet meals. Alongside the unique and purr-plenty affections of our sweet cat, Bubba Walnut, Steve’s love has sustained me through the course of this dissertation. vii For Thierman & Bubba viii Table of Contents Acknowledgments .................................................................................................................................................. ii Table of Contents ............................................................................................................................................... viii List of Figures ......................................................................................................................................................... x Introduction ............................................................................................................................................................ 1 1 The Essence of Professionalization: A Historical & Theoretical Survey ....................................... 25 1.1 Etymology and History, Prior to the 20th Century ...................................................................................... 26 1.1.1 Connection with the Guilds ........................................................................................................................ 31 1.1.2 The History of the Anglo-American Professions ...............................................................................
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