The moral economy of grades and standards

Although they are ubiquitous, grades and standards are usually considered to be merely convenient technologies for organizing and regulating markets so as to reduce transaction costs. In contrast, in this paper it is argued that grades and standards are part of the moral economy of the modern world. Grades and standards both set norms for behavior and standardize (create uniformity). Grades and standards standardize (1) things, (2) workers, (3) markets, (4) capitalists, (5) standards themselves, (6) those who make the standards, (7) consumers, and (8) the environment. Grades and standards may be established by (1) national and international governmental standards bodies, (2) industry and independent standards setting bodies, (3) industry leaders, (4) specialized standards setting bodies, or (5) purchasing agents. Who participates in setting the standards, the processes by which standards are set and what the consequences of setting the standards are have considerable impact on fundamental questions about who we are and how we shall live.