Corporate responsibility requires a conception of collective agency on which collective agents are able to form moral judgments and act on them. In spite of claims to the contrary, existing accounts of collective agency fall short of this kind of corporate autonomy, as they fail to explain how collective agents might be responsive to moral reasons. I discuss how a recently proposed conception of shared valuing can be used for developing a solution to this problem. Although the resulting conception of (...) corporate autonomy is useful for making sense of corporate responsibility, it also gives rise to what I call ‘the Corporate Autonomy Problem’. Autonomous collective agents are in principle entitled to the same rights as autonomous individual agents. However, at least some individual rights, such as the right to vote, the right to life, and the right not to be enslaved cannot plausibly be attributed to collective agents. This intuition is supported by normative individualism, the position according to which corporate agents are not entitled to non-derivative rights at all. I argue that without a proper solution to this problem—I sketch the available options—saving corporate responsibility requires giving up on normative individualism. (shrink)

This paper explores the ethical dilemma of conflicting loyalties found in whistleblowing. Central to this dilemma is the internal/external disclosure dichotomy; disclosure of organisational wrongdoing to an external recipient is seen as disloyal, whilst disclosure to an internal recipient is seen as loyal. Understanding how the organisation and society have dealt with these problems over the last 30 years is undertaken through an analysis of Vandekerckhove’s project, which seeks to place the normative legitimisations of whistleblowing legislation and organisational whistleblowing policies (...) within a globalisation semantic able to contain this conflict between society and the organisation. This project fails, it is argued, because of Vandekerckhove’s particular understanding of the organisation as an autopoietic system, i.e. an operationally closed system. A case is made to understand organisations as complex systems, i.e. operationally open systems. Critical Complexity theory sees the identities of systems and components as coterminous. In the context of the organisation, this means that the identities of the corporation and its corporate members arise and die together. The whistleblower’s disclosure reconfigures the organisation by forcing the organisation to open up and make its boundaries flexible, making the designation ‘internal’ or ‘external’ to the organisation, and, therefore, who qualifies as a recipient of a disclosure of wrongdoing, flexible. The organisation is restrained from retailing against the whistleblower, because its identities are coterminous. Furthermore, as the disclosure cannot be categorically defined as either internal or external, the question of whether an external disclosure can qualify as an act of organisational loyalty becomes moot. (shrink)

In the field of business and society, several complementary frameworks appear to be in competition for preeminence. Although debatable, the primary contenders appear to include (a) corporate social responsibility, (b) business ethics, (c) stakeholder management, (d) sustainability, and (e) corporate citizenship. Despite the prevalence of the five frameworks, difficulties remain in understanding what each construct really means, or should mean, and how each might relate to the others. To address the confusion, the authors propose three core concepts—value, balance, and accountability—that (...) might be used to better integrate the five frameworks and potentially provide the basis for further discussion and theoretical development of the business and society field. (shrink)

The paper reports on research undertaken in three organisations seeking to explore anomie at work. This research explores whether a distinction in the levels of anomie between people's perception of the work and non-work contexts exists in three organisations, that is whether people are more likely to feel more hopeless and helpless in their work or non-work life. It also looks at whether people in different organisations have significantly different levels of anomie. A significant difference in the non-work anomie between (...) organisations, but no significant difference in work anomie between organisations, was found. In the three organisations researched, the anomie score in the non-work context is lower than in the work context, indicating that respondents perceive the work context as more anomic. The work anomie for the total sample was found to be significantly higher that the non-work anomie. The implications for ethical behaviour at work and business ethics are discussed. (shrink)

Through the use of rhetoric linking private economic transactions and international labor and human rights standards, the movement has successfully challenged corporate practices that were previously considered unremarkable.

In business ethics journals, Kant’s ethics is often portrayed as overly formalistic, devoid of substantial content, and without regard for the consequences of actions or questions of character. Hence, virtue ethicists ride happily to the rescue, offering to replace or complement Kant’s theory with their own. Before such efforts are undertaken, however, one should recognize that Kant himself wrote a “virtue theory” (Tugendlehre), wherein he discussed the questions of character as well as the teleological nature of human action. Numerous Kant (...) scholars argue that Kant already erected precisely the kind of integrative moral architecture that some of his modern interpreters (while aiming to supersede him) wish to construct. For business ethics, this divergence of scholarly opinion is of crucial importance. It shows first that the standard portrayals of Kant’s ethics in business ethics textbooks—as rigidly deontological, narrowly individualistic, and hence unsuitable for the specific demands of corporate agency—might have to be revised. Second, discussions in the business ethics literature on stakeholder-engagement and managerial decision-making likewise stand to gain from a more nuanced picture of Kant’s moral philosophy. Third, a reassessment of Kant’s ethics with regard to questions of personal character and moral sentiments might also lead to a more favorable view of the relevance of his ethics for managerial practice. Last, but not least, the many current attempts to reconcile Kant’s freedom-oriented philosophy with virtue theories stand to benefit considerably from a better understanding of how Kant himself conceived of one such synthesis between the formal and substantial aspects of morality. This, ultimately, could lead to an important overlapping consensus in the academic literature as to the role and relevance of virtuous conduct in business. (shrink)

Individualists hold that moral responsibility can be ascribed to single human beings only. An important collectivist objection is that individualism is morally deficient because it leaves a normative residue. Without attributing responsibility to collectives there remains a “deficit in the accounting books” (Pettit). This collectivist strategy often uses judgment aggregation paradoxes to show that the collective can be responsible when no individual is. I argue that we do not need collectivism to handle such cases because the individualist analysis leaves no (...) responsibility-deficit. Harm suffered in such situations can have only two sources. Harm is either due to culpable wrongdoing by individuals. Harm is then redressed by holding these individuals responsible. Or harm does not result from culpable wrongdoing. Such harm may have to be redressed too, but not because anyone is responsible for it. Therefore, the charge of moral insensitivity against individualist accounts can be rejected. Furthermore, in the last section of the chapter I will show that collectivist talk about moral responsibility can be used for ethically questionable purposes as well. Collectivists cannot claim the moral high ground. (shrink)

ABSTRACTCurrent‐day management leaders such as Peter Drucker and Rosabeth Moss Kanter have cited Mary Parker Follett as guru and prophet given her foreknowledge of systems theory, action research and leadership. She viewed business as a social institution and work itself as a community service, concepts particularly relevant in the context of understanding social entrepreneurship. Referencing two of her works, “The Individual in Society” and “Business in Society”, this paper introduces Follett, defines social entrepreneurship and presents her ideas as timely insights (...) on the meaning of work, ethics and the role of business in society. (shrink)

Humans are causing global climate change (GCC), and such climate change causes harms. Robin Attfield explained how individuals should be understood to be culpable for these harms. In this paper, I use a critical analysis of Attfield’s explanatory framework to explore further difficulties in accounting for corporate responsibility for these harms. I begin by arguing that there are some problems with his framework as it is applied to individuals that emit greenhouse gases (GHGs). I then show that it will be (...) very difficult to extend this framework to corporations. This is not a criticism of Attfield’s work (as he does not discuss corporate responsibility for those harms associated with GCC), but it will serve to show the difficulty in philosophically explaining corporations’ moral culpability when it comes to these harms. In fact, one positive conclusion of this paper is that it highlights a new area of concern that has been ignored in discussions of corporate responsibilities—that of mediated responsibilities—which is how Attfield understands our responsibilities regarding GCC. The discussion of this concern will draw attention to another positive conclusion of this paper: the harms associated with CO2 are very unlike the harms associated with other airborne-emitted substances, which will indicate that we will need new ways of understanding how individuals and corporations are philosophically responsible for these harms. The final positive conclusion of this paper will be a discussion of what the constraints should be on new approaches to explaining our culpability. (shrink)

There seems to be popular consensus that multinational corporations (MNCs) should take responsibility for both the intended and unintended consequences of their operations. However, within the discipline of ethics, reflection on the responsibilities of MNCs continues to be highly controversial. In this article, we reflect on one of the more contentious issues in this debate, namely, the moral responsibility of MNCs for the unintended consequences of their operations. It is argued that at least two questions need to be addressed, namely, (...) whether or not MNCs can be held morally responsible for anything and - should this be the case - what it actually means to hold the MNCs responsible. (shrink)

This essay responds to the machine question in the affirmative, arguing that artifacts, like robots, AI, and other autonomous systems, can no longer be legitimately excluded from moral consideration. The demonstration of this thesis proceeds in four parts or movements. The first and second parts approach the subject by investigating the two constitutive components of the ethical relationship—moral agency and patiency. In the process, they each demonstrate failure. This occurs not because the machine is somehow unable to achieve what is (...) considered necessary and sufficient to be a moral agent or patient but because the characterization of agency and patiency already fail to accommodate others. The third and fourth parts respond to this problem by considering two recent alternatives—the all-encompassing ontocentric approach of Luciano Floridi’s information ethics and Emmanuel Levinas’s eccentric ethics of otherness. Both alternatives, despite considerable promise to reconfigure the scope of moral thinking by addressing previously excluded others, like the machine, also fail but for other reasons. Consequently, the essay concludes not by accommodating the alterity of the machine to the requirements of moral philosophy but by questioning the systemic limitations of moral reasoning, requiring not just an extension of rights to machines, but a thorough examination of the way moral standing has been configured in the first place. (shrink)

Standard accounts in social ontology and the group cognition debate have typically focused on how collective modes, types, and contents of intentions or representational states must be construed so as to constitute the jointness of the respective agents, cognizers, and their engagements. However, if we take intentions, beliefs, or mental representations all to instantiate some mental properties, then the more basic issue regarding such collective engagements is what it is for groups of individual minds to share a mind. Somewhat surprisingly, (...) this very issue has not received much attention in the respective debates and when it has, typically the outlook has been skeptical or outright negative. In this paper, I argue that it is epistemologically possible for a group of individuals to literally share a single mental unit. In particular, I will put forward and defend what I shall call the zombie conception of group minds. (shrink)

In regard to the explanation of actions that are governed by institutional rules, John R. Searle introduces the notion of a mental “background” that is supposed to explain how persons can acquire the capacity of following such rules. I argue that Searle’s internalism about the mind and the resulting poverty of his conception of the background keep him from putting forward a convincing explanation of the normative features of institutional action. Drawing on competing conceptions of the background of Heidegger and (...) Wittgenstein, I propose to revise Searle’s conception. The background of institutional agency can only provide a convincing explanation if it includes the context of actions and intersubjective structures of a shared life-world. I suggest that a further development of this idea would lead to the identification of the background with a web of social recognition. (shrink)

In recent decades, concepts of group agency and the morality of groups have increasingly been discussed by philosophers. Notions of collective or joint duties have been invoked especially in the debates on global justice, world poverty and climate change. This paper enquires into the possibility and potential nature of moral duties individuals in unstructured groups may hold together. It distinguishes between group agents and groups of people which – while not constituting a collective agent – are nonetheless capable of performing (...) a joint action. It attempts to defend a notion of joint duties which are neither duties of a group agent nor duties of individual agents, but duties held jointly by individuals in unstructured groups. Furthermore, it seeks to illuminate the relation between such joint duties on the one hand and individual duties on the other hand. Rebutting an argument brought forward by Wringe, the paper concludes that it is not plausible to assume that all humans on earth can together hold a duty to mitigate climate change or to combat global poverty given that the members of that group are not capable of joint action. (shrink)

Models of moral responsibility rely on foundational views about moral agency. Many scholars believe that only humans can be moral agents, and therefore business needs to create models that foster greater receptivity to others through ethical dialog. This view leads to a difficulty if no specific person is the sole causal agent for an act, or if something comes about through aggregated action in a corporate setting. An alternate approach suggests that corporations are moral agents sufficiently like humans to be (...) treated as persons, which leads to questions of intentionality and the organizational structure required to support the claim. In this article, I make an intermediate claim combining Goodpaster and Matthews' (60:132–141, 1982 ) view that a corporation may have a moral culture which affects subjective choices, with those of Painter-Morland (17(3):515–534, 2007 ) who points out that we should move from a model that posits discrete persons acting on each other to one where morality comes about through shared experience between agents who participate in each other’s lives. I argue that the discussion has been trapped in traditional dichotomies, and is better served by language that more accurately represents the dynamic interplay between organization and individual. I underwrite this claim by looking at recent changes in British and American legal approaches to corporate responsibility. These provide greater incentives for owners and business leaders to encourage employees to discuss the reflexive nature of legal and moral responsibility in business, facilitate workers to voice their moral concerns, and create structures and processes that allow those concerns to be heard. (shrink)

Organization ethics praxis is theory and method of appropriate action for addressing ethics issues and developing ethical organizations. The perspective of praxis (theory and method of action) is important and different from the perspectives of theoria (theory of understanding), epistemology (ways of knowing), and ontology (ways of being/existing). Praxis is the least developed area within the field of organization ethics. Differences between theoria and praxis are considered within the context of Kohlberg—Gilligan developmental ethics where part of the controversy may be (...) unnecessary due to Kohlberg’s concentrating on epistemology and theoria, but not praxis; and, Gilligan’s considering aspects of praxis with epistemology and theoria. Differences between epistemology and praxis perspectives are considered in the contexts of two cases: Socratic “double-loop” action-learning conversations the night before the Challenger explosion; and, “triple-loop״ action-learning in a cross-cultural Boston—Indonesia child worker safety, acid-washed jeans case. (shrink)

The debate over corporate moral responsibility has become a fixture in business ethics research and teaching. Only rarely, however, does the sizable literature on that question consider whether the debate has important practical implications. This article examines that question from a corporate control perspective. After assuming corporate moral responsibility’s existence for purposes of argument, the article concludes that such responsibility makes a difference in cases where it is present but personal responsibility is absent. Then the article tries to identify the (...) forces that diminish personal responsibility when corporate responsibility exists. The most important such forces, it concludes, spring from the socialization processes people undergo when they enter groups. One example is the well-known phenomenon of groupthink, which can exculpate individuals by rendering them justifiably ignorant of foreseeable risks of harm. (shrink)

Abstract:Should the responsibilities of business managers be understood independently of the social circumstances and “market forces” that surround them, or (in accord with empiricism and the social sciences) are agents and their choices shaped by their circumstances, free only insofar as they act in accordance with antecedently established dispositions, their “character”? Virtue ethics, of which I consider myself a proponent, shares with empiricism this emphasis on character as well as an affinity with the social sciences. But recent criticisms of both (...) empiricist and virtue ethical accounts of character deny even this apparent compromise between agency and environment. Here is an account of character that emphasizes dynamic interaction both in the formation and in the interplay between personal agency and responsibility on the one hand and social pressures and the environment on the other. (shrink)

Nonprofit organizations play a crucial role in society. Unfortunately, many such organizations are chronically underfunded and struggle to meet their objectives. These facts have significant implications for corporate philanthropy and Kant’s notion of imperfect duties. Under the concept of imperfect duties, businesses would have wide discretion regarding which charities receive donations, how much money to give, and when such donations take place. A perceived problem with imperfect duties is that they can lead to moral laxity; that is, a failure on (...) the part of businesses to fulfill their financial obligations to nonprofit organizations. This article argues the problem of moral laxity rests on a misinterpretation of Kantian ethics and, therefore, is really not a problem at all. As such, we argue corporate philanthropy while an imperfect duty should be interpreted more akin to perfect duties and, as a consequence, moral laxity does not arise for those corporations committed to acting on the basis of the moral law. More specifically, firms have duty-based obligations on the basis of benevolence, and as good corporate citizens, to help fund non-profit organizations. (shrink)

Who Needs Stories if You Can Get the Data? ISPs in the Era of Big Number Crunching Content Type Journal Article Category Special Issue Pages 371-390 DOI 10.1007/s13347-011-0041-8 Authors Mireille Hildebrandt, Institute of Computer and Information Sciences (ICIS), Radboud University Nijmegen, Nijmegen, the Netherlands Journal Philosophy & Technology Online ISSN 2210-5441 Print ISSN 2210-5433 Journal Volume Volume 24 Journal Issue Volume 24, Number 4.

The starting point of the paper is the frequent ascription of moral duties to states, especially in the context of problems of global justice. It is widely assumed that industrialized or wealthy countries in particular have a moral obligation or duties of justice to shoulder burdens of poverty reduction or climate change adaptation and mitigation. But can collectives such as states actually hold moral duties? If answering this affirmatively: what does it actually mean to say that a state has moral (...) obligations or duties of justice? In this paper I argue that states can be considered collective agents which can hold moral duties. If a collective holds moral duties this entails duties for its individual members. I show how depending on their position within the collective these duties differ. (shrink)

Does ?ought? imply ?can? for collectives' obligations? In this paper I want to establish two things. The first, what a collective obligation means for members of the collective. The second, how collective ability can be ascertained. I argue that there are four general kinds of obligation, which devolve from collectives to members in different ways, and I give an account of the distribution of obligation from collectives to members for each of these kinds. One implication of understanding collective obligation and (...) ability in the proposed way is that a group can be blameworthy for failing to realize its obligation even when no member of the group is blameworthy for failing to realize her obligation. (shrink)

Despite some exceptions, the business ethics literature on the moral responsibility of corporations does not emphasize a subject critical to that inquiry: the general nature of corporations. This article attempts to lessen the imbalance by describing three conceptions of the corporation that have been prominent in twentieth century legal theorizing, and by sketching their implications for the moral responsibility of corporations. These three conceptions, at least two of which have counterparts in the philosophical and organizational theory literature, are the concession, (...) aggregate, and real entity theories. The article concludes that the real entity theory is the most plausible of the lot. At least under prevailing tests of moral responsibility, it then contends, corporations-as-real-entities are morally responsible for most of their members' actions. (shrink)

Robert Solomon has presented a version of business ethics in terms of virtues theory. It is a good thing that business ethics should be understood in terms of virtues theory, but the account that Solomon gives is seriously misleading in important respects. "A virtue is a pervasive trait of character that allows one to 'fit into' a particular society and to excel in it," he says. This is something that we might query: what a society will recognize as a virtue (...) might well be what fits that formula, but sometimes we shall want to recognize as a virtue what enabled somebody to stand out against his or her society and change it, and shall want to say that those traits that enable somebody to fit happily into (say) a slave society are vices rather than virtues. That is to say, a society's recognition of virtues, its application of virtues theory in picking out various character traits as valuable, will depend on other judgments common in that society, and we might well differ from that society in those judgments. (shrink)

Abstract:Western business philosophy is rooted in the concepts of free enterprise, free markets, free choice. Yet freedom has its limits. Nature itself imposes constraints. In the state of nature each business must try to accomplish everything autonomously and ward off the attacks of rivals. These activities cost the business a great deal of freedom. The social contract emerges from such anarchy to increase the freedom available to all members of society. It does so by setting limits on individual freedom which (...) actually increase the overall amount of freedom available within the system. The Social Equation presents a relational model of this contract to show how overall freedom is increased in a state of society. In so doing, the obligations which society places on businesses to produce beneficial goods and services is developed. Next, the complex relationship between socially enforced constraints and social moral constraints is examined, showing that social moral constraints increase freedom more than do enforced constraints. This work concludes with proposed uses of the Social Equation as a heuristic for business ethics. (shrink)

Govier conceives of forgiveness as “a process of overcoming attitudes of resentment and anger that may persist when one has been injured by wrongdoing” (viii). She offers an account of bilateral, unilateral, and mutual forgiveness. Her work has pronounced political import in that she argues that attitudes and dispositions can be attributed to groups, that groups can suffer harm, and that groups can be responsible agents of wrongdoing. As a consequence, Govier contends that groups can forgive. Her method is to (...) employ a host of examples taken from recent (World War II and after) history, sprinkle in a few invented examples, and lay out long-winded and typically repetitive arguments. The result is an occasionally provocative and often overly one-sided treatment punctuated by earnestness. (shrink)

The question of corporate moral responsibility – of whether it makes sense to hold an organisation corporately morally responsible for its actions,rather than holding responsible the individuals who contributed to that action – has been debated over a number of years in the business ethics literature. However, it has had little attention in the world of health care ethics. Health care in the United Kingdom(UK) is becoming an increasingly corporate responsibility, so the issue is increasingly relevant in the health care (...) context, and it is worth considering whether the specific nature of health care raises special questions around corporate moral responsibility. For instance, corporate responsibility has usually been considered in the context of private corporations, and the organisations of health care in the UK are mainly state bodies. However, there is enough similarity in relevant respects between state organisations and private corporations, for the question of corporate responsibility to be equally applicable. Also, health care is characterised by professions with their own systems of ethical regulation. However, this feature does not seriously diminish the importance of the corporate responsibility issue, and the importance of the latter is enhanced by recent developments. But there is one major area of difference. Health care, as an activity with an intrinsically moral goal, differs importantly from commercial activities that are essentially a moral, in that it narrows the range of opportunities for corporate wrongdoing, and also makes such organisations more difficult to punish. (shrink)

In this article we critique the collectivist approach to collective moral responsibility. According to philosophers of a collectivist persuasion, a central notion of collective moral responsibility is moral responsibility assigned to a collective as a single entity. In our critique, we proceed by way of discussing the accounts and arguments of three prominent representatives of the collectivist approach with respect to collective responsibility: Margaret Gilbert, Russell Hardin, and Philip Pettit. Our aims are mainly critical; however, this should not be taken (...) to imply that we do not ourselves support an alternative account of collective responsibility. We advocate an individualist account of collective responsibility. On this view of collective responsibility as joint responsibility, collective responsibility is ascribed to individuals. Each member of the group is individually morally responsible for the outcome of the joint action, but each is individually responsible jointly with the others. (shrink)

This article explores the possible convergence between the capabilities approach and utilitarianism to specify CSR. It defends the idea that this key issue is related to the anthropological perspective that underpins both theories and demonstrates that a relational conception of individual freedoms and rights present in both traditions gives adequate criteria for CSR toward the company's stakeholders. I therefore defend "relational capability" as a means of providing a common paradigm, a shared vision of a core component of human development. This (...) could further lead to a set of indicators aimed at assessing corporate social performance as the maximization of the relational capability of people impacted by the activities of companies. In particular, I suggest a way of evaluating the contribution of extractive companies to the communities close to their industrial sites in extremely poor areas, not from the viewpoint of material resources and growth, but from the viewpoint of the quality of the social environment and empowerment. (shrink)

Abstract:In contrast to “social contract” theories of the corporation, a moral justification of the corporation as actual, not hypothetical, agreement is presented. Central to the justification is the idea of personal projects, as developed by Loren Lomasky. The key idea is the role that corporations can play in the construction and advancement of personal, value-creating projects. The concept of the corporation as actual agreement, as a type of “right of association” theory, is defended against influential criticism of such theories by (...) Thomas Donaldson. (shrink)

If the agent responsible for an action is to be given praise or blame by the moral community for that action, then accurate responsibility ascriptions must be made. Since the moral community may have to evaluate the actions of corporate agents, care must be taken to insure that the assumption of Methodological Individualism (MI) does not infect that process. Nevertheless, there is no guarantee that accurate responsibility ascriptions will be made in cases connected with corporate action as long as corporate (...) scapegoating may occur. Because corporate scapegoating is a behavior pattern that attempts to falsify correct responsibility ascriptions it will be of interest to the moral theorist. Once I have considered three objections to the idea of corporate scapegoating I shall offer a fictional description of it found in Ayn Rand''s work,Atlas Shrugged. Finally, I shall raise a question about its present day use by corporations in our society. (shrink)

R. E. Ewin has argued that corporations are moral persons, but Ewin describes them as being unable to think or to act in virtuous and vicious ways. Ewin thinks that their impoverished emotional life would not allow them to act in these ways. In this brief essay I want to challenge the idea that corporations cannot act virtuously. I begin by examining deficiencies in Ewin''s notion of corporate personhood. I argue that he effectively reduces corporations to the status of incompetent (...) patients. I shall make use of a richer notion of corporate personhood as I explore the logical relationship between corporate action and the quality of the corporate emotional life. After discussing an alternate methodology for making moral assessments of action I consider briefly two corporate disasters: the crash on Mt. Erebus, the Imperial Foods plant fire. These cases are used to show the inadequacy of Ewin''s thesis that only corporate managers are capable of displaying vice. (shrink)

The question of corporate moral responsibility – whether corporate bodies can be held morally responsible for their actions – has been debated by a number of writers since the 1970s. This discussion is intended to add to that debate, and focuses for that purpose on our understanding of the organisation. Though the integrity of the organisation has been called into question by the postmodern view of organisations, that view does not necessarily rule out the attribution of corporate agency, any more (...) than the postmodern view of the person rules out the attribution of individual agency. The postmodern view is opposed to a reifying, metaphysical view of corporate agency, but a semantic view of corporate agency would seem to sit more comfortably with it. A bigger problem for the idea of corporate moral responsibility arises from the fact that in Kantian terms organisations are not ends in themselves. In that sense they are not like persons, and this must limit their autonomy, and their responsibility. This aspect of organisations also limits their punishability. For these reasons corporate moral responsibility must be seen as more limited than the responsibility of persons. (shrink)

Shareholders of corporations have their liability for actions of the corporation limited by law. Unlike the equity holder in a partnership or proprietorship, the assets that a shareholder has distinct from her holdings in the enterprise can not be taken to satisfy liabilities arising from actions of the enterprise itself. This paper argues that a reasonable principle of fairness argues for an alternative to limited liability, proportional liability. Proportional liability makes a shareholder liable for the same proportion of a corporation''s (...) excess of liabilities over assets that her number of shares bears to the total number of shares outstanding. The key idea is that it is unfair in situations in which explicit agreements can not be reached for shareholders to bear only limited risk when they may receive gains from stock dividends and appreciation that are not limited to any pre-determined amount. Proportional liability has not been much examined in the financial literature. Good utilitarian arguments have been given for limited liability over unlimited liability for corporate shareholders, but these arguments do not clearly support the choice of limited liability over proportional liability. (shrink)

[Opening paragraph:] Ontological realism or holism about social groups is the thesis that groups are composite material particulars. Social groups are entities over which we quantify in the set of our best descriptions and explanations of the social world. The realist explains that a group considered in its own right can be causally responsible for the production of events or states of affairs. We do more than just describe and furnish explanations of the phenomena of the social world. In our (...) ordinary discourse and in the arenas of policy formation, legislation and the administration of laws we make moral judgments of groups and seek to direct action toward them. Granted realism about groups the concern of the present paper is the sense in or extent to which we can talk literally of a group as such being morally responsible, and, in particular, of whether it is apt to make responsibility judgments of large groups such as nations. That is, whether a group considered as an entity in its own right can be the appropriate bearer of the full-blown ascription of moral responsibility. For when we talk of individuals being collectively responsible we seem to just pick out as the responsible party them as a group—the individual members regarded jointly or collectively as one unit. (shrink)

As an alternative to attempts to impose models of personal moral development (e.g. Kohlberg) upon organisations we propose an evolutionary model of managing ethics in organisations. The Modes of Managing Morality Model that we suggest, is based on an analysis that explains why business organisations tend to move from less complex modes of managing ethics to more complex modes thereof. Furthermore, it also identifies the dominant ethics management strategies that characterise each of the stages. It is done in a way (...) that avoids claiming that the more advanced modes of managing ethics necessarily represent moral development by business organisations. Instead of claiming the organisations develop morally, we claim that organisations move through an evolutionary process of improving their sophistication in managing ethical performance. (shrink)

Peter French has argued that conglomerate collectivities such as business corporations are moral persons and that aggregate collectivities such as lynch mobs are not. Two arguments are advanced to show that French's claim is flawed. First, the distinction between aggregates and conglomerates is, at best, a distinction of degree, not kind. Moreover, some aggregates show evidence of moral personhood. Second, French's criterion for distinguishing aggregates and conglomerates is based on inadequate grounds. Application of the criterion to specific cases requires an (...) additional judgment of a pragmatic nature which undermines any attempt to demonstrate French's thesis that actual conglomerates are moral persons and aggregates are not. Thus, French's theory is seriously lacking both empirical basis and empirical relevance. (shrink)

The constitutions of many nations have been explicitly or implicitly founded upon principles of the social contract derived from Thomas Hobbes. The Hobbesian egoism at the base of the contract fairly accurately represents the structure of market enterprise. A contractarian analysis may, then, allow for justified or rationally acceptable universal standards to which businesses should conform. This paper proposes general rational restrictions upon multi-national enterprises, and includes a critique of unjustified restrictions recently proposed by the Organization for Economic Cooperation and (...) Development (OECD). I propose restrictions that may be tighter than the OECD and international law currently demand, because reason requires that the activities of enterprises accord with standards of environmental and governmental sustainability in addition to consortium, national law and international law agreements. I argue that it is justifiable that indictments may be presented by a citizen or a government against the local arm of a multinational enterprise in response to violations committed by an arm within a different country. (shrink)