The Anatomy of Moral Failure: A Philosophical Exploration of Systemic Ethical Collapse in Modern Markets

Anatomie de l'échec moral: une exploration philosophique de l'effondrement éthique systémique des marchés modernes

Nesrine Zaidi, Lokman Zaibet () and Mohsen Khouni
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Nesrine Zaidi: Department of Philosophy, - higher institute of human sciences of tunis
Lokman Zaibet: Sultan Qaboos University, Oman
Mohsen Khouni: Department of Philosophy, - Higher Institute of Human Sciences of Tunis, Tunisia

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Abstract: This paper constructs a comprehensive philosophical investigation of the systemic production of ethical failure within advanced capitalist systems, conceptualized as the "Structural Market Failure." This analysis integrates foundational economic philosophy with contemporary critical theory to trace the genealogy of modern ethical crises. Beginning with the paradigmatic schism between Bernard Mandeville's protoeconomic man and Immanuel Kant's moral agent, we examine how Adam Smith's dual conception of human nature was fractured, creating the intellectual conditions for ethical dislocation. Building upon this historical framework, we engage with contemporary philosophers including Michael Sandel (on moral limits), Elizabeth Anderson (on private government), Iris Marion Young (on structural injustice), Byung-Chul Han (on selfexploitation), and Evgeny Morozov (on technological solutionism) to diagnose how ethical failure becomes institutionalized rather than accidental. The synthesis reveals that what appears as recurrent ethical crisis is actually the logical output of systems designed to externalize moral costs while internalizing economic benefits. First and foremost, let us begin by recalling that the moral weariness of the economic system stems from a gradual erosion of trust, fueled by experiences perceived as unfair. Having become fragile, this trust rests on an expectation of reciprocity and moral consistency, thus revealing its instability and its susceptibility to the ethical fatigue of economic practices. The paper wraps up by suggesting a rebuilding framework that uses ideas from Amartya Sen's capability approach and Aristotle's practical wisdom. It supports creating an institutional moral setting that places economic activities back into social and ethical contexts.

Keywords: Market failure; Capability approach; Technological solutionism; Corporate governance; Capitalism; Moral philosophy; Homo Economicus; Structural injustice; Trust; Business ethics; Business ethics Trust Market failure Structural injustice Homo Economicus Moral philosophy Capitalism Corporate governance Technological solutionism Capability approach (search for similar items in EconPapers)
Date: 2026-06-10
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