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Sanctions and Freedom of Enterprise

Published online by Cambridge University Press:  03 February 2011

Fritz Redlich
Affiliation:
Belmont, Mass.

Extract

Leland H. Jenks and Thomas C. Cochran have suggested that the actions and motivations of modern businessmen be studied through the examination of “sanctions,” the latter defining “social sanction” as “a label for certain types of opinion or attitudes” involving judgments on what is worthy of praise and blame and of social penalties and rewards. When speaking of sanctions, we deal, he says, with a “general concept that stresses the stabilizing function of adages, admonitions, social ceremonies, traditional practices, and other such devices for protecting society from unpredictable behavior.” I believe this concept is a good tool for comparing two cultures of the same period or the same culture at two different periods, for showing the possibilities of, say, the Point Four Program, or for explaining otherwise inexplicable differences in the rate of capitalistic development. But considerable theoretical deliberation and many empirical studies are needed before it can be forged into a tool that can be widely used for research in entrepreneurship. This discussion is concerned with some considerations in connection with the application of the concept to the study of American businessmen and the freedom of enterprise in the nineteenth century.

Type
Review Articles and Discussions
Copyright
Copyright © The Economic History Association 1951

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References

1 See Cochran, Thomas C., “Role and Sanction in American Entrepreneurial History,” Change and the Entrepreneur (Cambridge, Mass., 1949), pp. 153 ff., esp. p. 158Google Scholar.

2 Ansprache an den jungen Unternehmer gehalten von Josef Winschuh auf dem Treffen junger Unternehmer in Hattenheim am Rhein, April 1950 (Frankfurt a.M., 1950). A translation of the important parts of this address is to be found in the Harvard Business Review, XXIX, No. 3 (1951), 35 ffGoogle Scholar.

3 See Kaphart, William M., “What Is the Position of Jewish Economy in the United States,” Social Forces, XXVIII (1949–50), 153 ffCrossRefGoogle Scholar.

4 There is a very amusing story by O. Henry (William Sydney Porter), “The Guardian of the Accolade,” in which, unbeknown to himself, a Negro porter is the agent who enforces the community's sanction to the effect that a respectable banker does not drink strong drinks. Roads of Destiny, The Complete Works (Garden City, N. Y., 1927), pp. 292 ffGoogle Scholar.

5 See the interesting case study by Rudolph, Frederick, “The American Liberty League,” American Historical Review, LVI (1950–51), 19 ffCrossRefGoogle Scholar.

6 Regarding the latter contention, see Gras, N. S. B., Business and Capitalism (New York, 1939), p. 307Google Scholar.