Ethical socialism is a political philosophy that appeals to socialism on ethical and moral grounds as opposed to economic, egoistic, and consumeristic grounds. It emphasizes the need for a morally conscious economy based upon the principles of service, cooperation, and social justice while opposing possessive individualism. Therefore, in contrast to socialism inspired by rationalism, historical materialism, neoclassical economics and Marxist theory which base their appeals for socialism on grounds of economic efficiency, rationality, or historical inevitability; ethical socialism focuses on the moral and ethical reasons for advocating socialism.
Ethical socialism is a form of liberal socialism closely related to Christian socialism, and had a profound impact on the social democratic movement and reformism during the later half of the 20th century, particularly in Great Britain. Ethical socialism is distinct in its focus on criticism of the ethics of capitalism, and not merely criticism of the economic, systemic, and material issues of capitalism.
The term "ethical socialism" initially originated as a pejorative by the Marxist economist Rosa Luxemburg against reformist revisionist Marxist Eduard Bernstein and his supporters, who evoked Kantian liberal ideals and ethical arguments in favor of socialism. Soon self-recognized ethical socialists arose in Britain, such as R. H. Tawney, a British Christian socialist, and its ideals were connected to Christian socialist, Fabian, and guild socialist ideals. Ethical socialism was an important ideology within the British Labour Party. Ethical socialism has been publicly supported by British Prime Ministers Ramsay MacDonald,Clement Attlee, and Tony Blair.