John Rawls's theory of justice offers a fresh perspective on fairness in society. It proposes that principles of justice should be chosen behind a "veil of ignorance," ensuring impartiality and prioritizing equal basic liberties for all citizens.

Rawls's approach contrasts with utilitarianism by emphasizing individual rights over maximizing overall welfare. His difference principle justifies redistributive policies to benefit the least advantaged, with implications for business ethics, fair hiring practices, and addressing wealth inequality.

Rawls's Theory of Justice

Justice as fairness vs utilitarianism

• Justice as fairness views society as a fair system of cooperation over time (social cooperation)
  • Principles of justice chosen behind a "veil of ignorance" ensures fairness and impartiality
    • Parties do not know their place in society (class, social status, talents)
  • Two principles of justice prioritize equal basic liberties for all citizens
    • Social and economic inequalities are permissible only if they are attached to positions open to all under fair equality of opportunity and benefit the least advantaged members of society (difference principle)
• Contrasts with utilitarianism which focuses on maximizing overall utility or welfare
  • Allows sacrificing individual rights for greater societal benefit (organ harvesting)
  • Rawls prioritizes individual rights and liberties cannot be sacrificed even if doing so would increase total welfare
  • Rawls's principles ensure a fair distribution of primary goods necessary for individuals to pursue their conception of the good life (education, healthcare)

Implications of difference principle

• The difference principle justifies redistributive policies to improve the well-being of the worst-off
  • Economic inequalities are just only if they benefit the least advantaged (poverty reduction)
• Implies progressive taxation and transfer payments
  • Higher tax rates for the wealthy to fund programs benefiting the disadvantaged (welfare, public housing)
• Calls for investing in public goods and services
  • Education, healthcare, infrastructure to improve opportunities for the least advantaged
• Establishes a social minimum ensuring all citizens have access to resources necessary for a decent life (basic income)
• Critics argue it may reduce incentives for productivity and innovation (brain drain)
  • Difficult to determine who the "least advantaged" are in practice
  • Potential for free-riding and exploitation of the system (welfare fraud)

Rawlsian justice in business ethics

• Businesses should consider the impact of their decisions on all stakeholders
  • Employees, customers, suppliers, local communities, environment
  • Special attention to the least advantaged stakeholders (low-wage workers, those in developing countries, marginalized communities)
• Fair equality of opportunity demands fair hiring and promotion practices
  • Avoid discrimination based on race, gender, social background
  • Provide training and development opportunities for all employees (mentorship programs)
• Distributive justice requires a fair distribution of benefits and burdens
  • Ensure living wages for all employees (minimum wage)
  • Avoid excessive executive compensation (CEO pay ratio)
  • Consider the impact of business decisions on wealth inequality (offshore tax havens)
• Balancing competing principles when justice may conflict with other ethical considerations
  • Maximizing shareholder value, maintaining competitiveness
  • Rawlsian framework provides guidance for prioritizing and balancing competing principles
    • Prioritize individual rights and the well-being of the least advantaged (corporate social responsibility)

Key concepts in Rawls's theory

• Basic structure: The fundamental political and social institutions that distribute primary goods and shape citizens' life prospects
• Lexical priority: The ordering of principles where the first must be fully satisfied before considering the second
• Overlapping consensus: Agreement on political principles among citizens with different comprehensive doctrines
• Public reason: The use of reasons and arguments accessible to all citizens when debating fundamental political questions
• Moral arbitrariness: The idea that factors beyond an individual's control (e.g., natural talents, social circumstances) should not determine their life prospects
• Well-ordered society: A society effectively regulated by a public conception of justice that citizens generally accept and comply with