- Business & Society
- Business Ethics Quarterly
- Journal of Business Ethics
- Business Ethics: A European Review
- Journal of Corporate Citizenship
- Zeitschrift für Wirtschafts- und Unternehmensethik
- Journal of Public Economics
He has written two volumes on markets and ethics:
- Economics, Ethics and the Market: Introduction and Applications (Routledge, 2007);
- The Market, Happiness and Solidarity: A Christian Perspective (Routledge, 2010).
During 2010-2013 he conducted a major research project into Corporate Social Responsibility in Europe on behalf of the European Union, in which 13,500 companies from 12 European countries provided data for a large survey developed by prof. Graafland. Recently, Graafland has written several articles on Calvin, economics and the credit crisis, on Aristotle’s and Adam Smith’s virtue ethics in relation to markets, and on MacIntyre’s virtue ethics and professional ethics in the financial sector. Prof. Graafland is currently editor of the section on Adam Smith in the Handbook on Virtue Ethics in Business and Management (to be published in 2015 by Springer). In 2014 Graafland published an article on the relationship between economic freedom, trust, GPD and happiness in the Journal of Happiness Studies.
Deelproject(en) in het Goede Markten Project
Selection of Publications
![]() | Graafland, Johan Vrijemarktinstituties, deugden en maatschappelijk verantwoord ondernemen Journal Article Management & Organisatie, 2020 (2/3), pp. 36-47, 2020. @article{Graafland2020c, title = {Vrijemarktinstituties, deugden en maatschappelijk verantwoord ondernemen}, author = {Johan Graafland }, year = {2020}, date = {2020-06-01}, journal = {Management & Organisatie}, volume = {2020}, number = {2/3}, pages = {36-47}, abstract = {In dit artikel onderzoekt de auteur of het effect van economische vrijheid op maatschappelijk verantwoord ondernemen afhankelijk is van de deugdzaamheid van bedrijven, zoals afgemeten aan hun intrinsieke motivatie voor MVO en hun langetermijngerichtheid. Dit onderzoek past daarmee in een groeiende literatuur waarin rekening wordt gehouden met meer gedragsmatige factoren van MVO-prestaties.}, keywords = {}, pubstate = {published}, tppubtype = {article} } In dit artikel onderzoekt de auteur of het effect van economische vrijheid op maatschappelijk verantwoord ondernemen afhankelijk is van de deugdzaamheid van bedrijven, zoals afgemeten aan hun intrinsieke motivatie voor MVO en hun langetermijngerichtheid. Dit onderzoek past daarmee in een groeiende literatuur waarin rekening wordt gehouden met meer gedragsmatige factoren van MVO-prestaties. |
![]() | Graafland, Johan; Wells, Thomas Journal of Business Ethics, 2020. @article{Graafland2020b, title = {In Adam Smith’s Own Words: The Role of Virtues in the Relationship Between Free Market Economies and Societal Flourishing, A Semantic Network Data‑Mining Approach}, author = {Johan Graafland and Thomas Wells}, url = {https://link.springer.com/content/pdf/10.1007/s10551-020-04521-5.pdf}, doi = {https://doi.org/10.1007/s10551-020-04521-5}, year = {2020}, date = {2020-04-29}, journal = {Journal of Business Ethics}, abstract = {Among business ethicists, Adam Smith is widely viewed as the defender of an amoral if not anti-moral economics in which individuals’ pursuit of their private self-interest is converted by an ‘invisible hand’ into shared economic prosperity. This is often justified by reference to a select few quotations from The Wealth of Nations. We use new empirical methods to investigate what Smith actually had to say, firstly about the relationship between free market institutions and individuals’ moral virtues, and secondly about the further relationship between virtues and societal flourishing. We show with more quantitative precision than traditional scholarship that the invisible hand reading dramatically misrepresents both the nuance and the sum of Smith’s analysis. Smith paid a great deal of attention to a flourishing society’s dependence on virtues, including the non-self-regarding virtues of justice and benevolence, and he worried also about their fragility in the face of the changed incentives and social conditions of commercial society.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Among business ethicists, Adam Smith is widely viewed as the defender of an amoral if not anti-moral economics in which individuals’ pursuit of their private self-interest is converted by an ‘invisible hand’ into shared economic prosperity. This is often justified by reference to a select few quotations from The Wealth of Nations. We use new empirical methods to investigate what Smith actually had to say, firstly about the relationship between free market institutions and individuals’ moral virtues, and secondly about the further relationship between virtues and societal flourishing. We show with more quantitative precision than traditional scholarship that the invisible hand reading dramatically misrepresents both the nuance and the sum of Smith’s analysis. Smith paid a great deal of attention to a flourishing society’s dependence on virtues, including the non-self-regarding virtues of justice and benevolence, and he worried also about their fragility in the face of the changed incentives and social conditions of commercial society. |
![]() | Graafland, Johan; Noorderhaven, Niels Culture and institutions: How economic freedom and long-term orientation interactively influence corporate social responsibility Journal Article Journal of International Business Studies, 2020. @article{Graafland2020, title = {Culture and institutions: How economic freedom and long-term orientation interactively influence corporate social responsibility}, author = {Johan Graafland and Niels Noorderhaven }, url = {https://doi.org/10.1057/s41267-019-00301-0}, doi = {10.1057/s41267-019-00301-0}, year = {2020}, date = {2020-01-08}, journal = {Journal of International Business Studies}, abstract = {Studies of international differences in firm behavior tend to consider either institutional or cultural factors. Focusing on corporate social responsibility (CSR), we conjecture that not only both institutions and culture need to be taken into account, but also the interaction between these two sets of factors. We theorize that the institutions associated with economic freedom in combination with the cultural trait long-term orientation positively influences CSR practices. Panel data of 5023 companies from 41 countries confirm this expectation. This finding pertains both to long-term orientation at the level of the society and at the level of the company. Our findings support calls for more attention to interactive effects of cultures and institutions.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Studies of international differences in firm behavior tend to consider either institutional or cultural factors. Focusing on corporate social responsibility (CSR), we conjecture that not only both institutions and culture need to be taken into account, but also the interaction between these two sets of factors. We theorize that the institutions associated with economic freedom in combination with the cultural trait long-term orientation positively influences CSR practices. Panel data of 5023 companies from 41 countries confirm this expectation. This finding pertains both to long-term orientation at the level of the society and at the level of the company. Our findings support calls for more attention to interactive effects of cultures and institutions. |
![]() | Graafland, Johan When Does Economic Freedom Promote Well Being? On the Moderating Role of Long-Term Orientation Journal Article Social Indicators Research, 2019, ISSN: 1573-0921. @article{Graafland2019d, title = {When Does Economic Freedom Promote Well Being? On the Moderating Role of Long-Term Orientation}, author = {Johan Graafland}, url = {https://doi.org/10.1007/s11205-019-02230-9}, doi = {10.1007/s11205-019-02230-9}, issn = {1573-0921}, year = {2019}, date = {2019-11-30}, journal = {Social Indicators Research}, abstract = {An increasing volume of literature has shown that economic freedom is related to life satisfaction. However, life satisfaction may not fully describe well-being because of its subjective nature. This study contributes to previous literature by extending analysis of the relationship between economic freedom and life satisfaction to other dimensions of well-being as measured by the better life index of the OECD that includes both objective and subjective measures. A second innovation of this paper is that, in explaining the differences in well-being between countries, we conjecture that the relationship between free market institutions as measured by economic freedom and well-being is moderated by the cultural dimension of long-term orientation. This hypothesis is supported for six out of 11 dimensions of well-being: income, community, health, life satisfaction, safety, and work---life balance. Our study shows that looking at interdependencies between culture and formal institutions can increase the explanatory power of internationally comparative research into well-being.}, keywords = {}, pubstate = {published}, tppubtype = {article} } An increasing volume of literature has shown that economic freedom is related to life satisfaction. However, life satisfaction may not fully describe well-being because of its subjective nature. This study contributes to previous literature by extending analysis of the relationship between economic freedom and life satisfaction to other dimensions of well-being as measured by the better life index of the OECD that includes both objective and subjective measures. A second innovation of this paper is that, in explaining the differences in well-being between countries, we conjecture that the relationship between free market institutions as measured by economic freedom and well-being is moderated by the cultural dimension of long-term orientation. This hypothesis is supported for six out of 11 dimensions of well-being: income, community, health, life satisfaction, safety, and work---life balance. Our study shows that looking at interdependencies between culture and formal institutions can increase the explanatory power of internationally comparative research into well-being. |
![]() | Graafland, Johan Contingencies in the relationship between economic freedom and human development: the role of generalized trust Journal Article Journal of Institutional Economics, pp. 1–16, 2019. @article{graaflandm, title = {Contingencies in the relationship between economic freedom and human development: the role of generalized trust}, author = {Johan Graafland}, url = {https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/contingencies-in-the-relationship-between-economic-freedom-and-human-development-the-role-of-generalized-trust/455C6214E32F50EF20C3F7BFA83E675A}, doi = {10.1017/S1744137419000705}, year = {2019}, date = {2019-11-07}, journal = {Journal of Institutional Economics}, pages = {1–16}, publisher = {Cambridge University Press}, abstract = {An increasing volume of literature has shown that human development is related to economic institutions. But previous literature has not considered that the effects of economic institutions on human development are contingent on culture. In this study, we contend that the effects of economic freedom (as an indicator of economic institutions) on human development are dependent on generalized trust (as an indicator of culture). Using panel analysis on a sample of 29 OECD countries during 1990–2015, we find that generalized trust positively moderates the relationship between economic freedom and human development. The policy implication is that free market institutions foster human development only in high trust societies, not in low trust countries.}, keywords = {}, pubstate = {published}, tppubtype = {article} } An increasing volume of literature has shown that human development is related to economic institutions. But previous literature has not considered that the effects of economic institutions on human development are contingent on culture. In this study, we contend that the effects of economic freedom (as an indicator of economic institutions) on human development are dependent on generalized trust (as an indicator of culture). Using panel analysis on a sample of 29 OECD countries during 1990–2015, we find that generalized trust positively moderates the relationship between economic freedom and human development. The policy implication is that free market institutions foster human development only in high trust societies, not in low trust countries. |
![]() | Graafland, Johan; Gerlagh, Reyer Economic Freedom, Internal Motivation, and Corporate Environmental Responsibility of SMEs Journal Article Environmental and Resource Economics, 74 (3), pp. 1101–1123, 2019, ISSN: 1573-1502. @article{Graafland2019f, title = {Economic Freedom, Internal Motivation, and Corporate Environmental Responsibility of SMEs}, author = {Johan Graafland and Reyer Gerlagh}, url = {https://doi.org/10.1007/s10640-019-00361-8}, doi = {10.1007/s10640-019-00361-8}, issn = {1573-1502}, year = {2019}, date = {2019-11-01}, journal = {Environmental and Resource Economics}, volume = {74}, number = {3}, pages = {1101--1123}, abstract = {The effect of economic freedom on firms' environmental responsible management is still unconcluded. We conjecture that the effects are conditional on a firm's internal motivation and use a large-scale survey to run an empirical test. The sample consists of 4338 small and medium-sized enterprises from twelve European countries. Distinguishing between intrinsic (environmental) and extrinsic (profit) internal motivations, we find clear support that the effects of economic freedom and intrinsic motivation on corporate environmental performance interact with each other. Our findings explain the ambiguous results of previous empirical studies at the aggregate level.}, keywords = {}, pubstate = {published}, tppubtype = {article} } The effect of economic freedom on firms' environmental responsible management is still unconcluded. We conjecture that the effects are conditional on a firm's internal motivation and use a large-scale survey to run an empirical test. The sample consists of 4338 small and medium-sized enterprises from twelve European countries. Distinguishing between intrinsic (environmental) and extrinsic (profit) internal motivations, we find clear support that the effects of economic freedom and intrinsic motivation on corporate environmental performance interact with each other. Our findings explain the ambiguous results of previous empirical studies at the aggregate level. |
![]() | Graafland, Johan; Noorderhaven, Niels Technological Competition, Innovation Motive and Corporate Social Responsibility: Evidence from Top Managers of European SMEs Journal Article De Economist, 2019, ISSN: 1572-9982. @article{Graafland2019g, title = {Technological Competition, Innovation Motive and Corporate Social Responsibility: Evidence from Top Managers of European SMEs}, author = {Johan Graafland and Niels Noorderhaven}, url = {https://doi.org/10.1007/s10645-019-09351-z}, doi = {10.1007/s10645-019-09351-z}, issn = {1572-9982}, year = {2019}, date = {2019-10-31}, journal = {De Economist}, abstract = {Various motives have been proposed for firms to engage in corporate social responsibility (CSR), but no attention has been paid to innovation as a motive to engage in CSR. In this paper we explore the role of this motive and hypothesize that it is particularly important for companies facing intensive technological competition. We find support for this in a sample of 2579 top managers of small and medium sized enterprises from 12 European countries. The innovation motive mediates the relationship between technological competition and CSR and is the most (second most) important motive for environmental and social CSR, respectively.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Various motives have been proposed for firms to engage in corporate social responsibility (CSR), but no attention has been paid to innovation as a motive to engage in CSR. In this paper we explore the role of this motive and hypothesize that it is particularly important for companies facing intensive technological competition. We find support for this in a sample of 2579 top managers of small and medium sized enterprises from 12 European countries. The innovation motive mediates the relationship between technological competition and CSR and is the most (second most) important motive for environmental and social CSR, respectively. |
![]() | Graafland, Johan; Bovenberg, Lans Government regulation, business leaders’ motivations and environmental performance of SMEs Journal Article Journal of Environmental Planning and Management, 2019. @article{Graafland2019e, title = {Government regulation, business leaders’ motivations and environmental performance of SMEs}, author = {Johan Graafland and Lans Bovenberg }, url = {https://doi.org/10.1080/09640568.2019.1663159}, year = {2019}, date = {2019-10-07}, journal = {Journal of Environmental Planning and Management}, abstract = {This paper investigates whether government regulation crowds out intrinsic motivation to improve environmental performance of small- and medium-sized enterprises (SMEs). Motivation crowding is the phenomenon by which external pressures reduce intrinsic motivation. Literature on motivation crowding effects of environmental regulations exhibits two gaps. First, previous studies have focused on households while neglecting business organizations, even though businesses account for a major part of industrial pollution worldwide. Second, previous literature neither measured intrinsic motivation nor tested how government regulation affects this motivation. Empirical evidence of motivation crowding by environmental regulations is therefore still lacking. This paper fills both research gaps. Using a dataset of 2,373 SMEs from 12 European countries, we show that government regulation enhances environmental performance directly but harms it indirectly by crowding out intrinsic and extrinsic motivations of business leaders. It only stimulates environmental performance for companies exhibiting low motivation.}, keywords = {}, pubstate = {published}, tppubtype = {article} } This paper investigates whether government regulation crowds out intrinsic motivation to improve environmental performance of small- and medium-sized enterprises (SMEs). Motivation crowding is the phenomenon by which external pressures reduce intrinsic motivation. Literature on motivation crowding effects of environmental regulations exhibits two gaps. First, previous studies have focused on households while neglecting business organizations, even though businesses account for a major part of industrial pollution worldwide. Second, previous literature neither measured intrinsic motivation nor tested how government regulation affects this motivation. Empirical evidence of motivation crowding by environmental regulations is therefore still lacking. This paper fills both research gaps. Using a dataset of 2,373 SMEs from 12 European countries, we show that government regulation enhances environmental performance directly but harms it indirectly by crowding out intrinsic and extrinsic motivations of business leaders. It only stimulates environmental performance for companies exhibiting low motivation. |
![]() | Graafland, Johan; Lous, Bjorn Income Inequality, Life Satisfaction Inequality and Trust: A Cross Country Panel Analysis Journal Article Journal of Happiness Studies, 20 (6), pp. 1717–1737, 2019, ISSN: 1573-7780. @article{Graafland2019c, title = {Income Inequality, Life Satisfaction Inequality and Trust: A Cross Country Panel Analysis}, author = {Johan Graafland and Bjorn Lous}, url = {https://doi.org/10.1007/s10902-018-0021-0}, doi = {10.1007/s10902-018-0021-0}, issn = {1573-7780}, year = {2019}, date = {2019-08-01}, journal = {Journal of Happiness Studies}, volume = {20}, number = {6}, pages = {1717--1737}, abstract = {Literature has argued that income inequality crowds out trust. However, whether income inequality makes people less trusting depends on how they perceive income inequality within their personal social context and social cognition. In this paper we therefore conjecture that the relationship of income inequality to trust depends on how income inequality affects inequality of life satisfaction. If life satisfaction inequality is high, distrust is generated among the least happy. This will increase polarization and the risk of rebellion, thereby also affecting trust among the happier people. Thus, life satisfaction inequality may be an essential factor in the relationship between income inequality and trust. In previous literature, the potential mediating role of life satisfaction inequality in the relationship between income inequality and social trust has not yet received attention. We test our model by panel analysis on 25 OECD countries in the period 1990--2014. The panel analysis shows that income inequality increases life satisfaction inequality and that both income inequality and life satisfaction inequality have a significant negative impact on social trust. Mediation tests show complementary mediation: besides the direct negative effect of income inequality on trust, we find an indirect effect mediated by life satisfaction inequality. This indirect effect counts for 20% of the total effect of income inequality on trust. Our results imply that policy options for increasing trust are not limited to countering income inequality, but can also include policy measures that directly reduce inequality of life satisfaction.}, keywords = {}, pubstate = {published}, tppubtype = {article} } Literature has argued that income inequality crowds out trust. However, whether income inequality makes people less trusting depends on how they perceive income inequality within their personal social context and social cognition. In this paper we therefore conjecture that the relationship of income inequality to trust depends on how income inequality affects inequality of life satisfaction. If life satisfaction inequality is high, distrust is generated among the least happy. This will increase polarization and the risk of rebellion, thereby also affecting trust among the happier people. Thus, life satisfaction inequality may be an essential factor in the relationship between income inequality and trust. In previous literature, the potential mediating role of life satisfaction inequality in the relationship between income inequality and social trust has not yet received attention. We test our model by panel analysis on 25 OECD countries in the period 1990--2014. The panel analysis shows that income inequality increases life satisfaction inequality and that both income inequality and life satisfaction inequality have a significant negative impact on social trust. Mediation tests show complementary mediation: besides the direct negative effect of income inequality on trust, we find an indirect effect mediated by life satisfaction inequality. This indirect effect counts for 20% of the total effect of income inequality on trust. Our results imply that policy options for increasing trust are not limited to countering income inequality, but can also include policy measures that directly reduce inequality of life satisfaction. |
![]() | Graafland, Johan Is Relational Thinking Wishful Thinking? Book Chapter van Beuningen, Cor; Buitendijk, Kees (Ed.): Finance and the common good, pp. 114-121, Amsterdam University Press, 2019, ISBN: 9789463727914. @inbook{Graafland2019i, title = {Is Relational Thinking Wishful Thinking?}, author = {Johan Graafland}, editor = {Cor van Beuningen and Kees Buitendijk}, url = {https://www.moralmarkets.org/book/finance-and-the-common-good/}, isbn = {9789463727914}, year = {2019}, date = {2019-07-16}, booktitle = {Finance and the common good}, pages = {114-121}, publisher = {Amsterdam University Press}, abstract = {This paper discusses the effects of relational thinking on our economy and on our society, asking whether market and morals, or the economy and relationships, are compatible in the first place.}, keywords = {}, pubstate = {published}, tppubtype = {inbook} } This paper discusses the effects of relational thinking on our economy and on our society, asking whether market and morals, or the economy and relationships, are compatible in the first place. |
Articles & Blogs

January 20, 2018

Series "'Good Markets' book interviews":
Which books – classics or recently published – should you read to acquire a deep understanding of markets and morality? In this series of interviews researchers from the project ‘What Good Markets are Good for’ make their personal recommendation.
Articles in this series: