The moral economy

Scottish philosophers in the eighteenth century interpreted the market econ omy as a "civil society," a path toward freedom and a new morality, separat e from monarchal government. They expected markets to be self regulating an d expected them to function with ties to a moral life. The market was a civ il order, but that vision was destroyed when corporations rose to power in succeeding centuries, and governments were enlarged to regulate markets. To day we see a concern about big corporations and government bureaucracy, and a return to the idea of a "civil society." This article proposes that toda y's vision of "civil society" is advanced by an economy that returns to its principles of self (civil) regulation. Markets become civil and self regul ating when government, business, and nonprofits cooperate to create systems of social accountability for the common good. A self-regulating market is constructed experimentally through civil associations with self-enforceable codes of conduct, civic-oriented partnerships, legislation, banking, inves tments, and corporations whose policies are based on stakeholder studies th at reduce moral and financial costs. Modest steps toward a self-regulating economy offers a foundation for today's version of a "civil society."