- 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; Gerlagh, Reyer
In: Environmental and Resource Economics, 74 (3), pp. 1101–1123, 2019, ISSN: 1573-1502.
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
In: De Economist, 2019, ISSN: 1572-9982.
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
In: Journal of Environmental Planning and Management, 2019.
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
In: Journal of Happiness Studies, 20 (6), pp. 1717–1737, 2019, ISSN: 1573-7780.
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.
Is Relational Thinking Wishful Thinking? Book Chapter
In: van Beuningen, Cor; Buitendijk, Kees (Ed.): Finance and the common good, pp. 114-121, Amsterdam University Press, Amsterdam, 2019, ISBN: 9789463727914.
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.
In: Corporate Social Responsibility and Environmental Management, 2019.
This paper investigates the theoretical and empirical relevance of motivation crowding theory for owner–managers' motivation towards sustainable development. Motivation crowding theory has argued that external pressures enforce (crowd in) moral motivation if these pressures are perceived as supportive. On the basis of this theory, we conjecture that a competitive environment that is characterized by a high intensity of competition on innovation will crowd in moral motivation towards sustainable development if owner–managers believe that environmental policy practices increase the innovative capability of their company. Test results on survey data filled out by 650 owner–managers support this hypothesis. These results imply that policy makers, who aim at stimulating innovation as well as sustainable development, should inform managers about the innovation‐enhancing effects of environmental policy practices.
In: Radix (tijdschrift over geloof en wetenschap), 45 (1 (april 2019)), pp. 31-43, 2019.
Het belang van deugden in de economie is niet vanzelfsprekend. Veel economen gaan uit van het calvinistische mensbeeld dat de mens geneigd is tot het kwade en alleen eigenbelang nastreeft. Maar dat eigenbelang wordt steeds problematischer. Toch is het de vraag of economen deze les ter harte nemen. De gedachte dat het nastreven van het eigenbelang goed is voor de economie heeft immers al oude papieren. Deze gedachte gaat onder andere terug tot de Wealth of Nations van Adam Smith, de vader van de economische wetenschap. Maar het vreemde is dat Adam Smith in zijn andere boek, A Theory of Moral Sentiments, betoogt dat een samenleving alleen maar gelukkig kan zijn als mensen deugdzaam handelen. In dit artikel analyseer ik hoe deze tweespalt in het denken van Adam Smith wortelt in zijn godsbeeld. Daarna presenteer ik recent onderzoek in het kader van het project What good markets are good for dat inzicht biedt of en hoe deugden in de economie van belang zijn voor het menselijk floreren.
In: Journal of Cleaner Production, 218 , pp. 250 - 258, 2019, ISSN: 0959-6526.
In international scientific literature, it is argued from institutional theory that economic freedom stimulates corporate environmental responsibility. However, economic freedom comprises several different dimensions, such as government size, rule of law, open markets, and (freedom from) government regulation. Whereas previous literature has shown that rule of law and open markets stimulate corporate environmental responsibility, the impact of government size and government regulation on corporate environmental responsibility of companies located in different countries has yet not been explored. This paper contributes to scientific literature by researching the effects of these two dimensions of economic freedom on corporate environmental responsibility. We hypothesize that small government stimulates corporate environmental responsibility and that freedom from government regulation discourages it. Using panel data from ASSET4 for the corporate environmental responsibility of 5023 companies, and data of government size and government regulation from Fraser Institute and Heritage Foundation for 41 countries, the authors perform panel analysis for the period 2005–2014 to test the hypotheses. The estimation results show that both small size of government and freedom from government regulation decrease corporate environmental responsibility. The test results are robust for the type of economic freedom data (Fraser Institute or Heritage Foundation) used.
Graafland, Johan; Lous, Bjorn
In: Journal of Happiness Studies, online first , pp. 1-23, 2017.
Since Piketty’s Capital in the 21st Century in 2014, scientific interest into the impact of income inequality on society has been on the rise. However, little is known about the mediating role of income inequality in the relationship between market institutions and subjective well-being. Using panel analysis on a sample of 21 OECD countries to test the effects of five different types of economic freedom on income inequality, we find that fiscal freedom, free trade and freedom from government regulation increase income inequality, whereas sound money decreases income inequality. Income inequality is found to have a negative effect on life satisfaction. Mediation tests show that income inequality mediates the influence of fiscal freedom, free trade and freedom from government regulation on life satisfaction.
Graafland, Johan; Compen, B.
In: Journal of Happiness Studies, 16 (3), pp. 789–810, 2015.
Several researches have shown that economic freedom is positively related to life satisfaction. Only a few studies, however, have examined which aspects of economic freedom (small government size, quality of the legal system, sound money, trade openness or no regulation) drive this relationship. Furthermore, most studies construe the influence of economic freedom as additional to the influence of income per capita on life satisfaction. No research has studied the potential mediating role of income per capita or other mediators in the relationship between economic freedom and life satisfaction. In order to fill these gaps, this paper aims (1) to investigate which aspects of economic freedom are most related to life satisfaction, and (2) to test whether these relationships are mediated by income and trust. Based on a sample of 120 countries, we find that life satisfaction is positively related to the quality of the legal system and negatively related to small government size. Income per capita mediates the positive influence of the quality of the legal system on life satisfaction. Trust is found to mediate the positive influence of the quality of legal system and the negative influence of small government size on life satisfaction, but the significance of these indirect effects depends on the type of economic freedom indicators used. We find no significant direct effects from the economic freedom indicators on life satisfaction.
Articles & Blogs
April 16, 2019
February 19, 2019
The Psychological Mechanisms behind the Workings of the Invisible Hand
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:
September 20, 2017