This article provides an overview of the field of business ethics.

ABSTRACT:Many companies engage in dialogue with nongovernmental organizations about societal issues. The question is what a regulative ideal for such dialogues should be. In the literature on corporate social responsibility, the Habermasian notion of communicative action is often presented as a regulative ideal for stakeholder dialogue, implying that actors should aim at consensus and set strategic considerations aside. In this article, we argue that in many cases, communicative action is not a suitable regulative ideal for dialogue between companies and NGOs. (...) We contend that there is often an adversarial element in the relation between companies and NGOs, and that an orientation towards consensus can be in tension with this adversarial relation. We develop an alternative approach to stakeholder dialogue called ‘agonistic deliberation.’ In this approach, conflict and strategic considerations play a legitimate and, up to a certain point, desirable role. (shrink)

Biofuels have transitioned from a technology expected to deliver numerous benefits to a highly contested socio-technical solution. Initial hopes about their potential to mitigate climate change and to deliver energy security benefits and rural development, particularly in the Global South, have unravelled in the face of numerous controversies. In recognition of the negative externalities associated with biofuels, the European Union developed sustainability criteria which are enforced by certification schemes. This paper draws on the literature on stewardship to analyse the outcomes (...) of these schemes in two countries: the UK and Guatemala. It explores two key issues: first, how has European Union biofuels policy shaped biofuel industries in the UK and Guatemala? And second, what are the implications for sustainable land stewardship? By drawing attention to the outcomes of European demand for biofuels, we raise questions about the ability of European policy to drive sustainable land practices in these two cases. The paper concludes that, rather than promoting stewardship, the current governance framework effectively rubberstamps existing agricultural systems and serves to further embed existing inequalities. (shrink)

The United Nations (UN) 2030 Agenda for Sustainable Development has considerable potential for achieving a more sustainable future. However, the concrete realisation of Sustainable Development Goals (SDGs) is impeded by how they are implemented by a diverse set of competent agents. This conceptual paper draws on social impact theory to investigate how businesses can utilise the SDG framework to achieve positive social outcomes. We identify two pathways that can guide businesses to improve their SDGs interventions, which entail considering the _interconnections_ (...) between the goals that are directly or indirectly affected by the initiative at stake and the _inclusiveness_ of the actors affected by the SDGs. Building on the literature on hybrid organising (to frame interconnectedness) and the literature on multi-stakeholder partnerships and deliberative governance (to frame inclusiveness), we discuss a set of organisational mechanisms and transformations that can help businesses ensure that their SDGs interventions are more socially impactful. By doing so, this paper extends the literature on the role of companies for sustainable development and provides some practical implications. (shrink)

ABSTRACTThis article studies multi-stakeholder initiatives as spaces for both deliberation and contestation between constituencies with competing discourses and disputed values, beliefs, and preferences. We review different theoretical perspectives on MSIs, which see them mainly as spaces to find solutions to market problems, as spaces of conflict and bargaining, or as spaces of consensus. In contrast, we build on a contestatory deliberative perspective, which gives equal value to both contestation and consensus. We identify four types of internal contestation which can be (...) present in MSIs—procedural, inclusiveness, epistemic, and ultimate-goal—and argue that embracing contestation and engaging in ongoing revision of provisional agreements, criteria, and goals can enhance the democratic quality of MSIs. Finally, we explore the implications of this perspective for theorizing about the democratic quality in MSIs and about the role of corporations in transnational governance. (shrink)

The stream on political corporate social responsibility argues that companies have recently assumed state-like roles to influence global governance. However, following emerging calls for greater contextualization of CSR, we trace the historic evolution of PCSR in the case of Colombia and argue that such political engagement by firms is not new. Looking beyond a linear chronological account, we reveal the sedimentation process behind PCSR by exploring the archetypical political roles businesses have taken on in providing public goods and acting as (...) regulators, and chart their transformation. Our findings allow us to make two main contributions. First, by unearthing different strata of business and society relations, we enrich the research on PCSR, highlighting its historical sedimentation dynamics. By integrating institutional and historical perspectives, we respond to calls for complementary accounts of one of the premises found in the literature that considers globalization as the starting point of PCSR. Second, our exploration of the past and present of PCSR in Colombia provides scholars and practitioners with an overview of the complex state and stakes of CSR in that country. We also discuss the implications of sedimentation for PCSR theory and future research directions. (shrink)

According to Palazzo and Scherer, the changing role of business corporations in society requires that we take new measures to integrate these organizations into society-wide processes of democratic governance. We argue that their model of integration has a fundamental problem. Instead of treating business corporations as agents that must be held accountable to the democratic reasoning of affected parties, it treats corporations as agents who can hold others accountable. In our terminology, it treats business corporations as “supervising authorities” rather than (...) “functionaries.” The result is that Palazzo and Scherer’s model does not actually address the democratic deficit that it is meant to solve. In order to fix the problem, we advocate removing business corporations from any policymaking role in political CSR and limiting participation to political NGOs and other groups that meet the standards we set out for a politically representative organization (PRO). (shrink)

Key accomplishments of political corporate social responsibility scholarship have been the identification of global governance gaps and a proposal how to tackle them. Political CSR scholarship assumes that the traditional roles of state and business have eroded, with states losing power and business gaining power in a globalized world. Consequently, the future of CSR lies in political CSR with new global governance forms which are organized by mainly non-state actors. The objective of the paper is to deepen our understanding of (...) political CSR and reintegrate notions of state power into political CSR scholarship by highlighting how states set the context within which business takes place, regulate offshore business practices, and play pivotal roles in new global governance mechanisms. (shrink)

As forms of private self-regulation, multi-stakeholder initiatives have emerged as an important empirical phenomenon in global governance processes. At the same time, MSIs are also theoretically intriguing because of their inherent double nature. On the one hand, MSIs spell out CSR standards that define norms for corporate behavior. On the other hand, MSIs are also the result of corporate and stakeholder behavior. We combine the perspectives of institutional theory and club theory to conceptualize this double nature of MSIs. Based on (...) a stage model that looks at the interplay of actor and institutional dynamics, we generate insights into why actors join a voluntary MSI, how the various motivations and intentions of the actors influence the standard development, and how these as well as the MSI design are subsequently influenced by both external and internal dynamics. (shrink)

The legitimacy of multi-stakeholder initiatives (MSIs) as institutions for social and environmental governance in the global economy has received much scholarly attention over the past years. To date, however, research has yet to focus on assessing the legitimacy of MSIs in their interactions with other actors within larger systems of deliberation. Drawing on the deliberative systems perspective developed within deliberative democracy theory, we theorise a normative framework to evaluate the roles of MSIs within the broader systems of governance they co-construct (...) through their interactions with other initiatives, governments, non-governmental organisations, and other external actors. As we demonstrate in our evaluation of the illustrative case of the Bangladesh Accord on Fire and Building Safety as a MSI in the context of the Bangladeshi garment industry, this framework can help researchers assess whether a MSI ultimately serves to enhance or undermine the deliberative legitimacy of the overall system of which it forms a part. (shrink)

Managers often have discretion in interpreting their ethical requirements, and they should seek democratic guidance in doing so. The undemocratic nature of managerial ethical discretion is shown to be a recurring problem in business ethics. Joseph Heath’s market failures approach (MFA) is introduced as a theory better positioned to deal with this problem than other views. However, due to epistemic uncertainty and conceptual indeterminacy, the MFA is shown to allow a much wider range of managerial discretion than initially appears. The (...) paper explores how this range can be narrowed down with democratic input, comparing models based on formal state institutions and on the informal public sphere. A case study from the pharmaceutical industry illustrates the merits of the informal public sphere approach. (shrink)

AbstractIn this paper I provide a decolonial critique of received knowledge about deliberative democracy. Legacies of colonialism have generally been overlooked in theories of democracy. These omissions challenge several key assumptions of deliberative democracy. I argue that deliberative democracy does not travel well outside Western sites and its key assumptions begin to unravel in the ‘developing’ regions of the world. The context for a decolonial critique of deliberative democracy is the ongoing violent conflicts over resource extraction in the former colonies (...) of Africa, Asia and Latin America. I argue that deliberative democracy cannot take into account the needs of marginalized stakeholders who are defending their lands and livelihoods. The paper contributes to the literature by (1) offering a critique of hegemonic models of democracy that cannot address issues of inequality and colonial difference and (2) offering possibilities to imagine counterhegemonic alternatives for a democratization of democracy from below. (shrink)

ABSTRACTThe question of how to engage with stakeholders in situations of value conflict to create value that includes a plurality of conflicting stakeholder value perspectives represents one of the crucial current challenges of stakeholder engagement as well as of value creation stakeholder theory. To address this challenge, we conceptualize a discursive sharing process between affected stakeholders that is oriented toward discursive justification involving multiple procedural steps. This sharing process provides procedural guidance for firms and stakeholders to create pluralistic stakeholder value (...) through the discursive accommodation of diverging stakeholder value perspectives. The outcomes of such a discursive value-sharing process range from stakeholder value dissensus to low and increasing levels of stakeholder value congruence to stakeholder value consensus. Hence, this article contributes to the emerging literature on integrative stakeholder engagement by conceptualizing a procedural framework that is neither overly oriented towards dissensus nor consensus. (shrink)

Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

ABSTRACT:Deliberative democratic theory, commonly used to explore questions of “political” corporate social responsibility, has become prominent in the literature. This theory has been challenged previously for being overly sanguine about firm profit imperatives, but left unexamined is whether corporate contexts are appropriate contexts for deliberative theory in the first place. We explore this question using the case of Starbucks’ “Race Together” campaign to show that significant challenges exist to corporate deliberation, even in cases featuring genuinely committed firms. We return to (...) the underlying social theory to show that this is not an isolated case: for-profit firms are predictably hostile contexts for deliberation, and significant normative and strategic problems can be expected should deliberative theory be imported uncritically to corporate contexts. We close with recent advances in deliberative democratic theory that might help update the PCSR project, and accommodate the application of deliberation to the corporate context, albeit with significant alterations. (shrink)

Using the political corporate social responsibility lens of parentalism, this paper investigates the more subtle and less-visible interactional dynamics and strategies of power, resistance and justification that manifest between a multi-stakeholder-governed foundation and victims of a mining corporation’s dam collapse. The Renova Foundation was established to provide remedy through a deliberative approach to hundreds of thousands of victims from Brazil’s worst socio-environmental disaster—the collapse of Samarco Mining Corporation’s Fundão tailings dam. Data were collected from a combination of fieldwork and archival (...) analysis to assess the perceptions of victims, their defenders and foundation executives. The findings reveal 12 dialectical tensions from Renova’s attempts to remedy the victim’s injustices. The case analysis contributes through proposing a dialectical process model of stakeholder resistance and subversion to parentalist PCSR. The case reveals the pivotal use of time via the act of stalling as a strategic resource to exhaust victims and reach settlements. Furthermore, organizations justify their parentalism by blaming delays on the bureaucracy and shared responsibility of multi-stakeholder deliberation. Ultimately, I contend that victims must have an equal voice in the outcome of their remediation and that businesses responsible for causing harm should not decide these matters. (shrink)

Multi-stakeholder initiatives (MSIs)—private governance mechanisms involving firms, civil society organizations, and other actors deliberating to set rules, such as standards or codes of conduct, with which firms comply voluntarily—have become important tools for governing global business activities and the social and environmental consequences of these activities. Yet, this growth is paralleled with concerns about MSIs’ deliberative capacity, including the limited inclusion of some marginalized stakeholders, bias toward corporate interests, and, ultimately, ineffectiveness in their role as regulators. In this article, we (...) conceptualize MSIs as deliberative systems to open the black box of the different elements that make up the MSI polity and better understand how their deliberative capacity hinges on problems in different elements. On the basis of this conceptualization, we examine how deliberative mini-publics—forums in which a randomly selected group of individuals from a particular population engage in learning and facilitated deliberations about a topic—can improve the deliberative capacity of MSIs. (shrink)

Extant literature on Political CSR and the role of governments in the governance of business conduct tends to neglect key implications of the political-institutional macro-context for public deliberation. Contextual assumptions often remain rather implicit, leading to the need for a more nuanced, explicit and context-sensitive exploration of the theoretical and practical boundary conditions of Political CSR. In non-democratic political-institutional contexts, political pluralism and participation are limited, and governmental agencies continue to play the most central role in regulation and its enforcement. (...) Drawing on a qualitative case study on a nuclear energy project in the Hashemite Kingdom of Jordan, we show how both governments and MNCs co-create a context hostile to socially responsible business conduct in the sense of Political CSR. Utilizing rich qualitative data derived from interviews, public documents, and participant observation between 2008 and 2018, we specifically illuminate how—through which interactions and strategies—the multiple governmental and corporate actors involved counter civil society demands for public deliberation, indicating the limitations of Political CSR in non-democratic political-institutional contexts. We particularly contribute to the development of Political CSR by analysing the role of coercive and discursive forms of power. We thus offer a more nuanced perspective on the role of governments in constraining the room for public deliberation in the sense of Political CSR. (shrink)

ABSTRACT:Although the literature on multi-stakeholder initiatives for sustainability has grown in recent years, it is scattered across several academic fields, making it hard to ascertain how individual disciplines, such as business ethics, can further contribute to the debate. Based on an extensive review of the literature on certification and principle-based MSIs for sustainability, we show that the scholarly debate rests on three broad themes : theinputinto creating and governing MSIs; theinstitutionalizationof MSIs; and theimpactthat relevant initiatives create. While our discussion reveals (...) the theoretical underpinnings of the 3Is, it also shows that a number of research challenges related to business ethics remain unaddressed. We unpack these challenges and suggest how scholars can utilize theoretical insights in business ethics to push the boundaries of the field. Finally, we also discuss what business ethics research can gain from theory development in the MSI field. (shrink)

In this paper we investigate how different discourses on frugal innovation are articulated, and how the dynamics between these different discourses have led to a certain dominant understanding of frugal innovation today. We analyse the dynamic interactions between three discourses on frugal innovation: innovations for the poor, grassroots innovations by the poor, and more recently co-creating frugal innovations with the poor. We argue that this latter discourse is articulated as a hegemonic project as it is designed to accommodate demands from (...) both business and poor communities. We draw on Laclau and Mouffe’s concepts of ‘chain of difference’, ‘empty signifier’ and ‘floating signifier’ to explain the advent of the hegemonic discourse on co-creating innovations with the poor. We show how a floating signifier with radical potential, frugal innovation, has been hijacked and co-opted in a hegemonic project that has leveraged powerful ambiguous signifiers, with co-creation acting as an empty signifier. To clarify what is problematic in this hegemonic intervention, we expose how contemporary frugal innovation discourse contributes to a project of governing and exploiting rather than helping the poor, in ways that benefit formal economic actors while further worsening global inequalities. (shrink)

Multi-stakeholder initiatives have been praised as vehicles for tackling complex sustainability issues, but their success relies on the reconciliation of stakeholders’ divergent perspectives. We yet lack a thorough understanding of the micro-level mechanisms by which stakeholders can deal with these differences. To develop such understanding, we examine what frames—i.e., mental schemata for making sense of the world—members of MSIs use during their discussions on sustainability questions and how these frames are deliberated through social interactions. Whilst prior framing research has focussed (...) on between-frame conflicts, we offer a different perspective by examining how and under what conditions actors use shared frames to tackle ‘within-frame conflicts’ on views that stand in the way of joint decisions. Observations of a deliberative environmental valuation workshop and interviews in an MSI on the protection of peatlands—ecosystems that contribute to carbon retention on a global scale—demonstrated how the application and deliberation of shared frames during micro-level interactions resulted in increased salience, elaboration, and adjustment of shared frames. We interpret our findings to identify characteristics of deliberation mechanisms in the case of within-frame conflicts where shared frames dominate the discussions, and to delineate conditions for such dominance. Our findings contribute to an understanding of collaborations in MSIs and other organisational settings by demonstrating the utility of shared frames for dealing with conflicting views and suggesting how shared frames can be activated, fostered and strengthened. (shrink)

This article proposes a theoretical re-conceptualization of power dynamics and their legitimation in contemporary business–society relations using the prism and metaphor of parentalism. The paper develops a typology of forms of parentalism along two structuring dimensions: care and control. Specifically, four ideal-types of parentalism are introduced with their associated practices and power-legitimation mechanisms. As we consider current private governance and authority through this analytical framework, we are able to provide a new perspective on the nature of the moral legitimation of (...) power dynamics in contemporary business–society relations. And we weave the threads between this conceptual frame and historical antecedents, suggesting that business ethicists need to revive old debates on paternalism in light of the current pervasive trend of modernized and subtler forms of parentalism. Implications for business ethics and political CSR are discussed. (shrink)

ABSTRACT:Global multi-stakeholder initiatives are important instruments that have the potential to improve the social and environmental sustainability of global supply chains. However, they often fail to comprehensively address the needs and interests of various supply-chain participants. While voluntary in nature, MSIs have most often been implemented through coercive approaches, resulting in friction among their participants and in systemic problems with decoupling. Additionally, in those cases in which deliberation was constrained between and amongst participants, collaborative approaches have often failed to materialize. (...) Our framework focuses on two key aspects of these breakdowns: assumptions about the orientation of MSI participants, and the deliberation processes that participants use to engage with each other to create these initiatives and sustain them over time. Drawing from stakeholder and deliberation theories, we revisit the concept of MSIs and show how their deliberative capacity may be enhanced in order to encourage participants to collaborate voluntarily. (shrink)

Flagging labor governance in far-flung supply networks has prompted greater scrutiny of instrumental CSR and calls for models that are tethered more closely to accountability, constraint, and oversight. Political CSR is an apt response, but this paper seeks to buttress its deliberative moorings by arguing that the agonist notion of ‘domesticated conflict’ provides a necessary foundation for substantive deliberation. Because deliberation is more viable and effective when coupled with some means of coercion, a concept of CSR solely premised on reciprocal (...) corporate-stakeholder engagement is pre-mature; efforts should first be directed toward the antecedents of reciprocity and how it is to be achieved, and only then does deliberation become a reliably substantive exercise. The resulting account of agonistic CSR is generated through agonistic principles of realism, pro-action, contestation, and countervailence, and illustrated by the Bangladesh Accord. (shrink)

Multi-stakeholder partnerships have become a major driver to attain the United Nations Sustainable Development Goals. However, managing MSPs is difficult because of the multiple complexities they involve. We seek to contribute to a better understanding of how MSPs cope with these complexities by exploring the MSP scope. In our study of four global health MSPs, we find that a function-oriented scope in terms of focusing on a single intervention helped filter the relevant external and internal complexities, whereas an issue-oriented scope (...) focused on addressing the health issue with multiple interventions magnified the complexities. As a result, the latter MSPs became overwhelmed and self-absorbed, while the former MSPs managed to remain outward-looking and sustain their collaborative energy and support. On this basis, we identify three mechanisms through which the MSP scope either helped or hampered the ability to cope with complexity, and we discuss the theoretical and practical implications for MSPs addressing the SDGs. (shrink)

While the benefits of including local communities in multi-stakeholder initiatives have been acknowledged, their successful involvement remains a challenging process. Research has shown that large business interests are regularly over-represented and that local communities remain marginalized in the process. Additionally, little is known about how procedural fairness and inclusion can be managed and maintained during multi-stakeholder initiatives. The aim of this study was therefore to investigate how marginalized stakeholders, and local communities in particular, can be successfully involved during the course (...) of a multi-stakeholder initiative. An action research approach was adopted where the first author collaborated with a social housing association on an initiative to involve the local community in the design and implementation of circular economy approaches in a low-income neighbourhood. This study contributes to the multi-stakeholder initiative literature by showing that the successful involvement of marginalized stakeholders requires the initiators to continuously manage a balance between uncertainty–certainty, disagreement–agreement and consensus- and domination-based management strategies. Furthermore, our study highlights that factors which are regularly treated as challenges, including uncertainty and disagreement, can actually play a beneficial role in multi-stakeholder initiatives, emphasizing the need to take a temporally sensitive approach. This study also contributes to the circular economy literature by showing how communities can play a bigger role than merely being consumers, leading to the inclusion of a socially oriented perspective which has not been recognized in the previous literature. (shrink)

This article argues that the concept of deliberation is construed too narrowly in political corporate social responsibility (CSR) and that a concept of deliberation for political CSR should err toward useful speech acts rather than reciprocity and charity. It draws from the political philosophy, labor relations, and business ethics literatures to outline a framework for an extended notion of deliberative engagement. The characters of deliberative behavior and deliberative environment are held to generate four modes of engagement: strategic deliberation, unitarist deliberation, (...) pluralist deliberation, and deliberative activism. The article concludes by arguing that political CSR will be better positioned to realize its potential by moving away from primarily consensus-centered objectives to a more responsive range of deliberative goals and practice. (shrink)

This paper investigates necessary conditions for developing a participatory, rightsholder-driven approach to remedy for business-related human rights abuses by analyzing findings from a case study with the Fair Food Program. With the inclusion of human rights into discussions of business ethics and CSR, scholars and practitioners have made calls for participatory approaches to remedy to address cases of human rights abuses. However, a gap remains in our understanding of how to operationalize participatory approaches in a manner that empowers rightsholders, particularly (...) within contexts of severe power imbalances. The paper puts forth a rightsholder-driven theoretical framework for remedy, grounded on critical dialogic accountability principles and integrated with empirical analysis from the Fair Food Program case study. This framework defines remedy as a system comprising reinforcing aspects rather than standalone mechanisms. The critical dialogic accounting and accountability framework provides a theoretical framing of engagement that enables the inclusion of multiple, divergent voices and aims toward meaningful engagement with marginalized groups. The analysis of findings from the case study identifies enforcement and education as necessary conditions for effective and empowering rightsholder-driven approaches to remedy. The paper deconstructs these conditions to develop an understanding of the program’s unique approach to enforcement and education. The paper concludes by discussing the implications of rightsholder-driven remedy for Business and Human Rights and business accountability. (shrink)

The paper presents a renewed Habermasian view on transnational multi-stakeholder initiatives and assesses the institutional characteristics of the Equator Principles Association from a deliberative democracy perspective. Habermas’ work has been widely adopted in the academic literature on the political responsibilities of corporations, and also in assessing the democratic qualities of MSIs. Commentators, however, have noted that Habermas’ approach relies very much on ‘nation-state democracy’ and may not be applicable to democracy in MSIs—in which nation-states are virtually absent. We argue that (...) Habermas’ detailed conceptualization of the institutionalization of deliberative democracy can be applied to transnational MSIs if these initiatives can be said to have their own ‘dèmoi’ that can be represented in associational decision-making. Therefore, we develop a definition of the dèmos of an MSI based on the notion of collective agency. Subsequently, we explain how Habermas’ approach to democracy can be applied to MSIs and show that it has more to offer than hitherto has been uncovered. Our illustrative analysis of the EPA confirms the criticisms regarding this MSI which have recently been articulated by researchers and practitioners, but also yields new findings and possible avenues for the further development of the EPA: That is, although our assessment suggests that the EPA in its current state is still far from being a democratic MSI, the possibility of a sensible analysis of its democratic character indicates that transnational MSIs can, in principle, help to fill governance gaps in a democratic way. (shrink)

Global supply chains (GSCs) present the International Labour Organization (ILO) with a challenge that goes to the heart of its founding mandate and structure, one built on the prominence of nation states and national representatives of employers and workers. In February 2020, discussions in the ILO on the rise of GSCs reached deadlock. To fully understand why the ILO has been unable to address decent work deficits in GSCs greater attention needs to be paid to contestation, power and legitimacy in (...) the deliberation of labour governance. Drawing on the concept of agonistic pluralism we examine the evolution of the ILO’s attempt to establish a new labour standard on GSCs under three empirical phases between 2002 and 2020. We argue that shifting power asymmetries between the tripartite constituents of governments, employers and workers, increased counter-hegemonic contestation, and intensified questioning of the deliberative legitimacy of the adversaries, explain the dissensual relations at the ILO. This article contributes to the literature on labour standards in GSCs in demonstrating how and why contestation underpins the evolution of labour governance over time. (shrink)

Corporate social responsibility (CSR) has been recently conceptualized and studied as a political phenomenon. Most debates in this scholarship have thus far focused on normative issues. Less attention has been paid to the explanatory potential of CSR research grounded in political theory and philosophy. In this article, we conduct a pragmatist reading of political scholarship on CSR and seek to deploy existing knowledge for research pursuing political explanation. We argue that the political ontologies that underlie scholarship on CSR can be (...) used to transform normative and descriptive research also for explanatory uses. We show how ontologies vary in terms of potential research objects and scopes of political explanation, and argue that the main types of political-ontological stances adopted in scholarship on CSR, foundational and post-foundational stances, offer explanatory analysis of different schematic guidelines. Our pragmatist reading of previous research and an empirical case illustration of political explanation of change in corporate responsibility in the biofuel industry demonstrate the opportunities, limitations, and challenges different political-ontological commitments provide for political explanation. (shrink)

The proliferation of multistakeholder initiatives (MSIs) over the past years has sparked an intense debate on the political role of corporations in the governance of global business conduct. To gain a better understanding of corporate political behavior in multistakeholder governance, this article investigates how firms construct a political identity when participating in MSIs. Based on an in-depth case study of the Accord on Fire and Building Safety in Bangladesh—an MSI established after the collapse of the Rana Plaza garment factory complex (...) in 2013 to improve working conditions in the Bangladeshi garment industry—we introduce the construct of a political CSR (corporate social responsibility) identity (PCSRI) and explore how firms construct their PCSRIs in MSIs. Employing a qualitative, inductive theory-building method, we analyze interviews and archival data to develop a framework that elucidates how companies construct their PCSRIs within a continuum ranging from conservative to progressive. We show that constructing a PCSRI involves enacting specific, yet interrelated, political strategies that are themselves shaped by several forces over time. This article contributes to the literature by providing a political perspective on organizational identity construction that extends the emerging integrative perspective in political corporate social responsibility (PCSR) research. We suggest that MSIs should be conceptualized as inherently political governance mechanisms that are driven by multidirectional and dynamic political processes of identity construction. Our study shows that corporate political engagement in MSIs is a more nuanced and complex phenomenon than presently theorized. (shrink)

Multi-stakeholder initiatives involve actors from several spheres of society in collaborative arrangements to reach objectives typically related to sustainable development. In political CSR literature, these arrangements have been framed as improvements to transnational governance and as being somehow democratic. We draw on Mouffe’s works on agonistic pluralism to problematize the notion that consensus-led multi-stakeholder initiatives bring more democratic control on corporate power. We examine two initiatives which address two very different issue areas: the Roundtable on Sustainable Palm Oil and the (...) Bangladesh Accord on Fire and Building Safety. We map the different kinds of adversarial relations involved in connection with the issues meant to be governed by the two initiatives, and find those adversarial relations to take six main shapes, affecting the initiatives in different ways: competing regulatory initiatives; pressure-response relations within multi-stakeholder initiatives; pressure-response relations between NGOs and states through multi-stakeholder initiatives; collaboration and competition between multi-stakeholder initiatives and states; pressure-response relations between civil society actors and multi-stakeholder initiatives; and counter-hegemonic movements against multi-stakeholder initiatives as hegemonic projects. We conclude that multi-stakeholder initiatives cannot be democratic by themselves, and we argue that business and society researchers should not look at democracy or politics only internally to these initiatives, but rather study how issue areas are regulated through interactions between a variety of actors—both within and without the multi-stakeholder initiatives—who get to have a legitimate voice in this regulation. (shrink)

The effectiveness of multi-stakeholder initiatives (MSIs) in tackling grand social and environmental challenges depends on productive dialogue among diverse parties. Facilitating such dialogue in turn entails building common ground in form of joint knowledge, beliefs, and suppositions. To explore how such common ground can be built, we study the role of different facilitators and their strategies for bridging the perspectives of competing stakeholder groups in two contrasting MSIs. The German Partnership for Sustainable Textiles was launched in an initially hostile communicative (...) environment, whereas the Fossil Free Sweden Initiative proceeded in a fertile communicative environment. We trace how the facilitators in these initiatives achieved common ground through three bridging strategies—communicative integration, temporal calibration, and process alignment—adapted to the communicative environments of these MSIs. In hostile communicative environments, facilitators achieve common ground by steering diverging stakeholder groups towards ‘reconciling’ their different language registers, knowledge bases, and meaning systems to ‘meet in the middle’ on points of agreement and shared interests. In fertile communicative environments characterised by greater mutual trust, facilitators can steer interactants to ‘strategically appropriate’ to the language, knowledge, and meaning system of a particular stakeholder group to win this group’s support. Our analysis contributes to a better understanding of how productive multi-stakeholder dialogue can be facilitated. (shrink)

Political CSR scholars argue that multi-stakeholder initiatives (MSIs) should be designed to facilitate deliberation among corporations, civil society groups, and others affected by corporate conduct for their decisions to be considered democratically legitimate. However, critics argue that decisions reached within deliberative MSIs will lack democratic legitimacy so long as corporations are granted a role in helping to make them. If the critics are correct, it leads to a paradox. Corporations must be excluded from holding decision-making authority within MSIs if they (...) are to function as democratically legitimate regulatory institutions at a global level. However, this risks severely diminishing the incentive of corporations to support and participate within MSIs, which often depend heavily for their success on the visibility provided them by corporate participants. In this paper, I argue that this apparent paradox should be considered irrelevant to the future study of MSIs since it is both unnecessary and impractical for researchers to focus on establishing democratically legitimate systems of governance within them. Instead, I recommend an approach informed by three touchstones of pragmatic philosophy to guide their future study—a criterion of usefulness, wariness of category disputes and commitment to experimentalism. I conclude by drawing on research in political science and social psychology that demonstrates an important practical role for deliberation within such organizations, arguing that researchers must zero in on the role that inclusive deliberation can play in bolstering their effectiveness as regulatory instruments. (shrink)

Tackling grand challenges requires coordination and sustained effort among multiple organizations and stakeholders. Yet research on stakeholder theory has been conceptually constrained in capturing this complexity: existing accounts tend to focus either on dyadic level firm–stakeholder ties or on stakeholder networks within which the focal organization is embedded. We suggest that addressing grand challenges requires a more generative conceptualization of organizations and their constituents as stakeholder systems. Using the metaphor of ballet and insights from dance theory, we highlight four defining (...) dimensions of stakeholder systems (two structural and two dyadic); we proceed to offer a dynamic model of how those dimensions may interact and coevolve. Our metaphor and resulting theory of stakeholder systems are thereby well equipped to incorporate the complexity of tackling grand challenges, where many contemporary stakeholder arrangements are oriented around issues rather than firms. (shrink)

This article examines how place and place-basedness are essential to understanding the conflict dynamics of natural resource use. Based on a single case study and using an ethnographic approach to examine a place, the paper unearths how place is mobilised in corporate–community relations. This study defines place-basedness as having two relational elements: ecological and social embeddedness. It finds four positions with differing place identifications, meanings, and relationships with the ecological and social place. This article concludes that while ecological embeddedness enhances (...) the ability to resist natural resource use through knowledge attribution and actively mobilising a place, the social embeddedness of some positions constrains local people’s ability to resist. It also identifies attachment to and detachment from place as two aspects of a central mechanism whereby countering positions are mobilised in the hegemonic struggle. The findings contribute to our understanding of place as a constituting part of corporate–community relations and place-basedness both as a resource for and hindrance to resistance. (shrink)

In our time, innovation is considered an important way to address societal problems. That we expect so much from innovation to solve the challenges of our time, makes the question what could count as ‘responsible innovation’ more pressing. And that is what this thesis is about. The aim of this thesis is to offer philosophical reflections on responsible innovation in the business context. Since that is still a quite broad topic, the main title suggests its further focus: deliberation and food. (...) The first focus originates from the idea in the academic literature on responsible innovation, that innovators should not just assess by themselves what ‘responsible’ is, but should invite others to think along with them about the social and ethical aspects of innovation. Chapter 2 to 4 zoom in on this aspect of responsible innovation. The second focus has to do with the specific context of application, namely food and the food industry. Chapter 4 and 5 relate the topic of responsible innovation to this context. The question I raise in chapter 2 is whether the ideal of inclusive deliberation is suitable for innovation processes in businesses. I argue that this is not so easy, and provide different reasons why companies might not be willing to involve societal stakeholders into their innovation processes. First, the requirement of deliberation can be tension with the ability of companies to exploit their innovations commercially within a competitive market. Second, deliberation requires a certain degree of transparency about the innovation strategy of a company. Companies might not be willing to provide this transparency, because they fear knowledge leakage to other companies. Third, companies are controlled most often by people with a financial stake. Therefore, we can expect that financial considerations are decisive in the investment decisions of companies. This could conflict with the ideal of responsible innovation to ‘democratize’ innovation processes. Hence, I suggest that scholars should modify the ideal of deliberation in order to make it suitable to the business context, or they should suggest changes in the governance and regulation of markets so as to make deliberation more workable. Chapter 3 discusses the place of conflict and self-interest in deliberation. It starts with a discussion of the literature on stakeholder dialogue. In this literature, the ideal dialogue is presumed to aim at consensus. This also implies that participants avoid conflict and set self-interested considerations aside. I argue that this ideal of dialogue is problematic, especially for a dialogue between companies and NGOs. I show that companies can never completely set aside their profit-orientation, and hence that this ‘self-interest’ always influences their input in a dialogue. Furthermore, conflict and criticism can be necessary to make clear that societal problems require more attention, whether from the general public or from companies. Since the market is an imperfect institution, we need critical citizens and stakeholders such as NGOs to assess the behavior of companies. A certain degree of conflict between companies and NGOs may therefore be more desirable than a focus on consensus. For these reasons, I develop an alternative approach to dialogue in which conflict and self-interest have a legitimate place, and can even play a productive role. In chapter 4, a case-study is conducted to better understand how participants in a dialogue deal with conflicts. In this case-study, I analyzed different dialogues organized by the foundation ‘Ik Kies Bewust’, which issued a front-of-pack health label. In my analysis, I investigate the conflict between, on the one hand, the value of public health and healthy food, and, on the other hand, the commercial interests of companies. In the responses of companies to this conflict, three patterns became visible. First, companies frame their critics as not constructive, because, in their view, they only criticize but do not help to improve the label. Second, they stressed that they are really and genuinely motivated to make food healthier or to make a healthy food choice easier. Thereby, they seemingly tried to counter the image that they are just motivated to make profit. Third, they called on the government to take more control over the label, because this would make the label more reliable and more broadly adopted. I qualify these responses as defensive, which means that the conflict between commercial considerations and public interests is suppressed or ignored. An active response would require to recognize and confront the conflicts and dilemmas that companies face. The case-study makes clear how difficult it can be to engage in dialogue with critical stakeholders. In chapter 5, I reflect on how food innovation can be responsible. In trying to answer this question, I take a certain detour, by starting a discussion about the place of food in a life well-lived. For this purpose, I use the philosophy of Albert Borgmann. On the basis of my analysis of his philosophy, I argue that there are good reasons for engaging with food in active way, for example by growing your own vegetables and home-cooking, instead of consuming food merely passively. I also draw some implications for food innovation. In my view, people responsible for food innovation should critically assess whether new products or services enhance engagement or disengagement. Is it desirable, for example, to develop even more and better pre-packaged meals, or should we stimulate consumers to cook by themselves? I argue that it would be problematic if our overall pattern of dealing with food is characterized by disengagement and convenience, and hence that food innovation should not only go in this direction. (shrink)

Business is expected to contribute to grand challenges (GC) such as poverty within their corporate social responsibilities. Multi‐stakeholder initiatives (MSIs) have developed to a popular governance model to address GC. While existing scholarship has discussed the positive and negative aspects of MSIs, we know relatively little about how corporations within MSIs are held accountable. The objective of the study is to analyze the dynamics of accountability relationships between the corporate actor and the accountability forum to conceive a process model for (...) effective accountability relationships in developing countries. We conducted an inductive study which explored the tensions the accountability forum perceives in MSI accountability relationships and the criteria to meet the forum's accountability claims. Our study identified four accountability criteria: transparency, inclusion, procedural fairness, and efficacy. Our main theoretical claim is that considering the four accountability criteria in the process of facilitating, dialoguing, and evaluating allows affected stakeholders to validate and match legitimacy claims with their own expectations, and thus, manage MSIs more effectively. Our contribution to existing scholarship on MSIs in developing countries is that we offer a novel perspective on analyzing the effectiveness of MSIs to address GC through our focus on one element of MSIs––specifically accountability. Beyond academic theorizing, this perspective may well hold value for nongovernmental organizations, policymakers, and business managers as it advances a concept of responsibility based on a set of accountability criteria which have the potential to become a cornerstone for how MSI members can organize to effectively address GC in developing countries. (shrink)

When is industry self-regulation (ISR) a legitimate form of governance? In principle, ISR can serve the interests of participating companies, regulators and other stakeholders. However, in practice, empirical evidence shows that ISR schemes often under-perform, leading to criticism that such schemes are tantamount to firms marking their own homework. In response, this paper explains how current management theory on ISR has failed to separate the pragmatic legitimacy of ISR based on self-interested calculations, from moral legitimacy based on normative approval. The (...) paper traces three families of management theory on ISR and uses these to map the pragmatic and moral legitimacy of ISR schemes. It identifies tensions between the pragmatic and moral legitimacy of ISR schemes, which the current ISR literature does not address, and draws implications for the future theory and practice of ISR. (shrink)

In the current literature, institutional adoption of Corporate Social Responsibility (CSR) governance standards is mainly understood in a binary sense (adoption versus no adoption), and existing research has hitherto focused on inducements as well as on barriers of related organizational change. However, little is known about often invisible internal adoption patterns relating to institutional entrepreneurship in the field of CSR. At the same time, additional information about these processes is relevant in order to systematically assess the outcomes of institutional entrepreneurship (...) and to differentiate between substantive versus symbolic implementation. In this paper, we contribute a comparative intraorganizational differentiation of institutional adoption processes in the field of CSR, and we distinguish between broad and narrow organizational institutional adoption across different management functions relating to institutions of a similar type. Our study is based on a quantitative survey among members of the United Nations Global Compact Network Germany, as well as on qualitative interviews. We analyze different institutional adoption patterns and derive ten theoretical predictors of diverse institutional adoption choices and thereby inform the literatures on institutional entrepreneurship, CSR governance, and Multi-Stakeholder Initiatives. Besides our theoretical contributions, our findings serve as a source of information for practitioners engaged in CSR governance as they provide new insights into the managerial perception and assessment of different CSR standards and initiatives. (shrink)

The United States National Preparedness System has evolved significantly in the recent past. These changes have affected the system structures and goals for disaster response. At the same time, actors such as private businesses have become increasingly involved in disaster efforts. In this paper, we begin to fill the gap in the cross-sector literature regarding interactions that have systemic impacts by investigating how the simultaneous processes of systemic change and intensifying cross-sector interaction worked and interacted in the context of the (...) preparedness system. We examine these inter-linkages through a qualitative study in the setting of Hurricane Sandy. Drawing from systems theory, we develop a grounded model that provides an explanation for the system change and highlights how cross-sector interaction relates to the changes observed in the system. (shrink)

Scholars studying the global diffusion of “corporate social responsibility” (CSR) practices and the associated rise of privatized forms of economic governance have tended to shift attention away from the role of corporations in motivating these processes to the one played by nonbusiness forces seeking social control of corporations. We bring corporate power back in by turning the spotlight to the agency of business classes, the business entities capable of pursuing transcorporate, societal-level, macro-political endeavors. Building on a comparative investigation of two (...) of the world’s earliest mass CSR adoptions, in postwar Venezuela and Britain, we argue that business classes responding to anti-capitalist challenges were the original diffusers of CSR practices and, interrelatedly, promoters of CSR-based, privatized forms of regulation and governance. Organized by peak business associations, the purpose of these “business-class CSR mobilizations” was to weaken the state in its relation to corporations and increase the control of business over social trends. We discuss the contribution of our historical perspective and analytical approach to a more complete and balanced picture of the global rise of CSR in late capitalism. (shrink)

This article examines corporate social responsibility (CSR) through the lens of political ontology. We contend that CSR is not only a discursive mean of legitimization but an inherently ontological practice through which particular worlds become real. CSR enables the politics of place-making, connecting humans and nonhumans in specific territorial configurations in accordance with corporate needs and interests. We discuss three CSR mechanisms of singularization that create a particular corporate ontology in place: (1) community engagements that form ‘stakeholders’; (2) CSR standards (...) and certifications that produce singular sustainable environments; and (3) CSR reporting that erases ontological conflicts and enables the singularized representation (of the environment and the community) to travel to other locations of the corporate world. We argue that these ontological CSR practices obscure the pluriverse of other world and place-making practices that would create different kinds of sustainabilities based on less extractive and non-corporate ways of being in place. (shrink)