RISK Ronald F. White, Ph.D. Professor of Philosophy College of Mount St. Joseph

Harm Harm-Invasion of an Interest (Death, Pain, Disability, loss of pleasure) –Magnitude –Probability –Parties Involved: consumers, workers, public and environment, investors. Problems with Assessment of Magnitude Problems with Prediction Liberty and Risk –Self-regarding (Harm to Self) Information consent –Other-regarding (Harm to Others) Information consent Liability (Justice) –Minimum Standards Disclosure Standard Reasonably Prudent Person Strict Product Liability

Perspectives Deontological Rights Based Theories –Rationality (information) –Free Will (non-coercion) Teleological Utilitarian Based Theories –Greatest Happiness Principle Egoism Utilitarianism

Risk to Consumers Acceptable Risk Contractarian View –Duties Compliance with terms of sales contract Disclosure of the Nature of the Product Avoid Misrepresentation Coercion/Duress (price gouging?) –Variables Reliability Service Life Maintainability Product Safety Due Care View –Duties Design Production Information Problems Social Costs View –Strict Product Liability

Risk to Workers Occupational Risk –Safety –Health –Security Right to a Safe Workplace –Stockholder View –Stakeholder View Utilitarian View

Risk to Public or Environment Pollution –Stockholder View Private Costs Public Costs –Stakeholder View Future Generations Conservation of Resources –Stockholder and Stakeholder Views `Future Generations

Risk to Investors (Stockholders) Risks Due to the Nature of the Market –Complexity and prediction –High Risk=High payoff Risks Due to Disclosure Failure –Conflict of Interest Agency Problem –Brokers (fiduciary vs. salesmanship) »Disclosure of commissions Monitoring Problem