Recent discussions on corporate citizenship highlight the new political role of corporations in society by arguing that corporations increasingly act as quasi-governmental actors and take on what hitherto had originally been governmental tasks. By examining political and sociological citizenship theories, the authors show that such a corporate engagement can be explained by a changing conception of corporate citizens from corporate bourgeois to corporate citoyen. As an intermediate actor in society, the corporate citoyen assumes co-responsibilities for social and civic affairs and (...) actively collaborates with fellow citizens beyond governmental regulation. This change raises the question of how such corporate civic engagement can be aligned with public policy regulations and how corporate activities can be integrated into the democratic regime. To clarify the mode of CC contributions to society, the authors will apply the tenet of subsidiarity as a governing principle which allows for specifying corporations’ tasks as intermediate actors in society. By referring to the renewed European Union strategy for Corporate Social Responsibility, the authors show how such a subsidiary corporate-governmental task-sharing can be organized. (shrink)

In this paper, I analyze the moral responsibili- ties that companies have with regard to the development of their sector, especially when there are path dependences that can lead sectors on more or less morally accept- able paths, e.g., with regard to market access for disad- vantaged groups. The interdependencies between companies in a sector are underexplored in the literature on corporate social responsibility (CSR). Reflections on the normative status of profit-seeking and on the normative bases of CSR, however, provide (...) us with reasons for seeing sector-related responsibilities as an important component of CSR. Based on a case study of a financial institution, I analyze various morally relevant ways in which the strategic decisions of companies relate to those of other companies in their sector. I argue that companies have a co-responsibility to contribute to the development of the moral dimensions of their sectors, especially when they deal with vulnerable customers. (shrink)

Although legitimacy theory provides strong arguments that environmental, social and governance disclosure and performance can help mitigate firm-specific risks, this relationship has been repeatedly challenged by conceptual arguments, such as ‘transparency fallacy’ or ‘impression management’, and mixed empirical evidence. Therefore, we investigate this relationship in the revelatory case of initial public offerings, which represent the first sale of common stock to the wider public. IPOs are characterised by strong information asymmetry between firm insiders and society, while at the same time (...) suffering from uncertainty in firm legitimacy, culminating in amplified financial risks for both issuers and investors in aftermarket trading. Using data from the United States, we demonstrate that voluntary ESG disclosure reduces idiosyncratic volatility and downside tail risk and higher ESG ratings have lower associated firm-specific volatility and downside tail risk during the first year of trading in the aftermarket. We provide theoretical arguments for the relationships observed, suggesting that companies striving for ESG performance and communicating their efforts signal their compliance with sustainability-related norms, thus acquiring and upholding a societal license to operate. ESG performance and disclosure help companies build their reputation capital with investors after going public. We also report that ESG disclosure is a more consistent proxy for ex-ante uncertainty as an indicator of aftermarket risk, thereby replacing some of the more conventional measures, such as firm age, offered in the existing literature. (shrink)

Referring to the phenomenon of structural injustice resulting from unintended consequences of the combination of the actions of many people, Iris Marion Young claims for a new understanding of responsibility. She proposes what she calls a social connection model of responsibility which assigns responsibility to individuals also for participating in ongoing structural and social processes. To remedy structural injustice Young claims for collective action of various actors in society and assigns different degrees of responsibility depending on the agent’s position within (...) the structural process. However, although Young mentions power, privilege, interest, and collective ability as parameters influencing the degree of an actor’s responsibility to contribute to structural change she does not elaborate which responsibilities concern which groups in society. As we will outline in our contribution, we hold the tenet of subsidiarity to be a useful supplement to the conception of Iris Marion Young which would allow for assigning such responsibilities to different layers in society. However, since the tenet of subsidiarity is only a supple principle which does not distinguish between different kinds of duties, we propose to enrich the tenet of subsidiarity by the Kantian conception of perfect and imperfect duties. (shrink)

The term « subsidiarity » started to appear in managerial literature in the last few years, to advocate innovative managerial practices. The resurgence of this concept that originated from a political context can create problems. The goal of this paper is to expose the main difficulty of translating this concept from the political field to a corporate situation. Indeed, subsidiarity gives its inherent power back to the lower echelons of a political community. But the economic approach of organization theory assumes, (...) mainly by the means of agency theory, a top-down conception of the firm. Thus, it is not the lower echelons which delegates power to the higher echelons. Consequently, the subsidiarity principle seems not to be applicable to a corporate setting, unless we reverse the assumptions of economic approach of organization theory. Then, the principle of subsidiarity could be used as an illusion to con employees into believing they have legitimate power, in order to manipulate their freedom, and domesticate it for managerial ends. (shrink)

In the political context, the tenet of subsidiarity states that societal tasks should be solved by subordinate entities in society if these entities have the competencies to solve such problems wit...

Corporate citizenship, social responsibility and sustainability reports could be analyzed from a philosophical viewpoint. In this article, we will use Paul Ricoeur’s hermeneutic philosophy to assess the narrativity of such reports. Out of a philosophical viewpoint, our exploratory study analyzes the contents of ten reports: two corporate citizenship reports, three corporate social responsibility reports, and five sustainability reports. Those reports are arising in-time and are thus referring to past corporate events and phenomena. Sometimes such reports introduce a corporate world-dream that (...) could emphasize various issues such as human dignity and inclusiveness/diversity, global health, and planetary stewardship. They could even convey a subversive ideal that could strongly shake the foundations of business. The way business corporations are understanding corporate citizenship and sustainability could, more or less radically, change the way we are doing business. However, those corporate citizenship, social responsibility and sustainability reports do not have any emplotment. They are thus stories that cannot be considered as narratives. We could call them “would-be” narratives. (shrink)