 In business ethics, Heath advances a new theory, what he calls a "market failures" or "Paretian" approach, which states that "the market is essentially a staged competition, designed to promote Pareto efficiency, and in cases where the explicit rules governing the competition are insufficient to secure the class of favoured outcomes, economic actors should respect the spirit of these rules and refrain from pursuing strategies that run contrary to the point of the competition".The approach is neither akin to the shareholder theory, the stakeholder theory or to a personal ethics framework.Heath’s market failures approach follows from his work in political economy.