To shield stakeholders from exploitation, society increasingly expects organizations to engage with stakeholders. While exploitation of stakeholders is of great concern, economic literature points to the costly nature of stakeholder engagement vis-à-vis alternative mechanisms that protect stakeholders, such as competitive markets. When the costs of stakeholder engagement outweigh the benefits, why would organizations engage with stakeholders? Through an analysis of the cooperative enterprise and a comparison with its capitalist counterpart, we theorize two additional reasons why stakeholder engagement is beneficial. First, (...) we explain how stakeholder engagement facilitates long-term organizational resilience and protection of stakeholders in times of crisis, and second, we show how engagement is a decisive ingredient in answering non-economic value requirements of stakeholders. To conclude, we contribute to the broader stakeholder engagement and cooperative literature by stressing that engagement practices, and particularly democratic governance arrangements, are subject to design principles that sometimes favor stakeholders in capitalist firms. (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)

Niklas Luhmann held a skeptical view of the role of morality in the modern society. The present paper reassesses this skepticism in view of his early work showing the regime of functional differentiation to be supported by fundamental human rights. Building on this argument, the paper advocates a more positive view of morality which is shown to be related to the sustainability of social systems in their encompassing societal and natural environment. This view is warranted by the overarching Luhmannian theme (...) of the precariousness of system–environment relations. If this view is accepted, Luhmann’s work on fundamental human rights can be read as an illustration of moral problems caused by the overexpansion tendencies of the political system. This argument is shown to connect up with the ideas of Buchanan and Rawls, as well as to fit in with the Luhmannian construct of the dilemma of structure and function. (shrink)

The ICIJ’s release of the _Panama Papers_ in 2016 opened up a wealth of previously private financial information on the tax avoidance, tax evasion, and wealth concealment activities of politicians, government officials, and their allies. Drawing upon prior accountability and ethics focused research, we utilize a dataset of almost 28 M tweets sent between 2016 and early 2020 to consider the microdetails and overall trajectory of this particular social accountability conversation. The study shows how the publication of previously private financial (...) information triggered a Twitter-based social accountability conversation. It also illustrates how social accountability utterances are intra-textually constructed by the inclusion of social characters, the personal pronoun ‘we,’ and the use of deontic responsibility verbs. Finally, the study highlights how the tweets from this group of participants changed over the longer-term but continued to focus on social accountability topics. The provided analysis contributes to our understanding of social accountability, including how the release of previously private accounting-based financial information can trigger a grassroots social accountability conversation. (shrink)

Business firms play an increasingly influential role in contemporary societies, which has led many scholars to return to the question of the democratisation of corporate governance. However, the possibility of democratic deliberation within firms has received only marginal attention in the current debate. This article fills this gap in the literature by making a normative case for democratic deliberation at the workplace and empirically assessing the deliberative capacity of self-organised teams within business firms. It is based on sixteen in-depth interviews (...) in six German firms which practice various forms of self-organised teamwork. The article argues that self-organised teamwork can create a space for authentic, inclusive, and consequential deliberation by suspending authoritarian control structures within business firms. Finally, the article proposes the consideration of firms not only as necessary parts of a larger deliberative system but also as deliberative systems in themselves. (shrink)

Humanistic management emphasises the importance of respecting humanity in and through meaningful work within organisations. In this paper we introduce a Levinasian approach to organising. Levinas argues that the Other appeals to us and allows us to take responsibility towards the Other – i.c. an employee, a customer, a supplier, etcetera. In this article our focus is on employees. By taking the Other as a starting point of his reflections, Levinas helps to transform the organisation and management of work and (...) humans in business organisations. Based on the concept of alterity and becoming susceptible to the appeal that comes to us through what Levinas refers to as the ‘face of the Other’, we argue that the philosopher calls for ‘an agapeic turn’ to management and organisation. This turn means that the focus on the well-being of the employee – and the needs, interests, ideas, and expectations as perceived by him or her – should be at the core of organising. As a result, this paper calls for an increased focus on self-determination and self-organisation to allow the Other both voice and control over her or his behaviour, actions and contributions to the outputs and outcomes of one’s organisational unit. Through our focus on a Levinas approach, we concretize and deepen the traditional understanding of agape, making it more relevant to our functioning in a business setting. As a result, agape is introduced as an analytical concept that guides the structuring and the effectuation of human interaction in and through organisations. (shrink)

Deliberation has faced criticism with regard to its application to business, on the basis that it can be misused to disseminate an ideology, divert attention from genuine debates, or strengthen the power of certain people. We suggest that Aristotle’s notion of deliberation can mitigate these ethical risks and help companies strengthen their deliberative practices. A comprehensive perspective based on Aristotelian deliberation reveals the relevance of (a) individual and collective deliberation, promoting a virtuous and meaningful reflection, free from ideological conditioning; (b) (...) deliberation on ends and means that facilitates a transcendental and rooted reflection, thereby avoiding artificial debates; and (c) deliberation that is decisive and cooperative and thus prevents instrumentalization of deliberation by the strongest. We contribute to the discussion of the relationship between business and society by identifying the different steps in the deliberative process and promoting a dynamic perspective on deliberation. (shrink)