Oaths and Codes in Economics and Business

Since 2010, members of the executive boards of all banks in the Netherlands have had to sign an oath just as doctors swear the Hippocratic Oath. This Banker's Oath is part of a code of ethics which was developed to restore trust in banking after the economic crisis.  This initiative-unique in the world-has drawn international attention, and suggestions about similar oaths and codes can be heard in various countries. Accountants, financial advisers, actuaries, and controllers have started reevaluating their professional codes of ethics. A group of Harvard Business School graduates suggested the MBA Oath (Anderson and Escher, 2010), while economist George DeMartino proposed the Economist's Oath (Oxford University Press 2010). But can oaths and codes work in fields fraught with conflicts of interests (Boatright 2008)?

The Economist's Oath is primarily addressed to economists working as policy advisers, focusing as it does on methodological issues and issues of social justice. An economist swearing the oath promises to recognize that economics is an imperfect science, fraught with uncertainty, lack of precision, and many competing theoretical perspectives. The MBA oath contains the familiar themes from the business ethics and CSR literature: integrity, truthfulness, sustainability, accountability, stakeholders interests, and the avoidance of unbridled self-interest. And the Banker's Oath is primarily a promise to give the interests of clients a central place in one's professional decisions.

Professional oaths and codes are gaining popularity. But in stark contrast to the literature on corporate codes of ethics, surprisingly little research exists on professional oaths and codes. Questions include how the general public perceives oaths and codes; whether they help professionals stay focused on their social functions; how they influence behavior (if they do); whether they increase professionalism; whether they are consistent with general moral duties; whether they help moral deliberation or discussion within a profession; or whether they lead to distrust and illusory quality guarantees.

Inquiries should be sent to Boudewijn de Bruin at: [email protected] and Wilfred Dolfsma, corresponding editor Review of Social Economy, at [email protected].