The ethical status of social impact bonds

Julia Morley

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: I develop a framework for assessing the ethical status of social impact bonds (SIBs), drawing on evidence from UK and US SIBs that address recidivism, education, homelessness and healthcare. I extend work on the ethics of markets by Debra Satz to render it suitable for application to SIBs, highlighting informational weaknesses, power imbalances and the generation of harm. Ethical issues observed include the lack of informed consent, denial of care, prioritisation of profit over therapeutic effectiveness and unfair contracting. I find that SIBs are morally permissible in principle but are at great risk of becoming unethical in practice.

Keywords: Ethics; social impact bonds; civil society (search for similar items in EconPapers)
JEL-codes: E6 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-hme
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Citations: View citations in EconPapers (2)

Published in Journal of Economic Policy Reform, 2019. ISSN: 1748-7870

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:100426

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