The principle of ethical endogeneity has been taken up as the core of a theory of ethics in socio-scientific reasoning. We explain it briefly as follows: The principle points to the premise of knowledge-based interactive systems in which ethics are seen to play the role of cause and effect in generating extensive circular interrelationships between polity and the socio-economic system. This is a distinctly different view from that presented in mainstream economic and socio-scientific literature of occidental genre that treat ethics as either exogenous or neutral factors in scientific reasoning. According to the principle of ethical endogeneity, policy/institutional variables and socio-economic variables co-determine each other through feedbacks and interrelationships. This is enabled by the centricity of consensual forms of ethical order in the system. In Islamic political economy, which is the rigorous study of knowledge-based interactions among systems, such consensual (or globally common) ethics arise from the epistemology of Unity of God and the principle of systemic unification by means of the epistemology.

The axiomatic basis of ethics in knowledge-based interactive systems is taken to be the Unicity Precept -- a uniquely unifying world view interrelating all systems while lending itself to scientific inquiry. The axiomatic premis of the Unicity Precept is thereafter functionalized by a system of instruments and institutions that emanates from and reinforces the evolutionary understanding of the Unicity Precept and its dynamic role in explaining interrelationships in the socio-scientific order. It is essentially these circular interrelationships between the axiomatic premis and the socio-scientific system using the instruments, institutions and evolutionary knowledge formation in such interactive systems, that convey the meaning of endogeneity to ethical foundations.

In the socio-economic order, this circular cause-effect evolution of knowledge-based interrelationships is seen to take place between polity and the ecological order. A particular subset of the ecological order is the market system; a particular subset of polity is government. Most generally, the ecological order comprehends orderly combination of free agents of change. The polity comprehends a system of textual reference which establishes a body of thought and is capable of evolving by discursive exchange between itself and the ecological order within the given textual context.

In the area of cybernetics, the principle of ethical endogeneity is seen to provide a systems approach to the treatment of ethics in computer-simulated general equilibrium socio-economic models. Modern interactive methodologies of biological sciences and physics lend themselves to explain the nature of organistic interactions in cybernetical socio-economic systems with ethics as the simulational variable. Thus a thorough systemic methodology for treating ethical endogeneity by means of interactive socio-economic systems can be made possible through the techniques of social cybernetics.

A Mathematical Structure of the Principle of Ethical Endogeneity

Ethical Production Set

Ethical Consumption-Production Mapping

Ethical Distribution Set

The Concept of Ethico-Economic General Equilibrium Linking the Consumption-Production-Distribution Sets