A number of tensions have been suggested between stakeholder theory and strategic management (SM). Following a brief review of the histories of stakeholder theory and mainstream SM, we argue that many of the tensions are more apparent than real, representing different narratives about stakeholder theory, SM, business, and ethics. Part of the difference in these two theoretical positions is due to the fact that they seek to solve different problems. However, we suggest how there are areas of overlap, and we (...) argue that some of the tensions may, instead, provide interesting ways to put the two areas of scholarship and practice together. We maintain that SM and stakeholder theory could mutually benefit from a more pragmatist philosophy. (shrink)

This article relies on two major business ethics books to propose a decalogue of corporate behavior. Notably, both Donaldson and Dunfee's Ties That Bind (1999) and Kerr et al.'s CSR: A Legal Analysis (2009) tried to avoid the sinuous and inconclusive normative quest for hypernorms of business social responsibility: the former proposed an integrated social contract between business and community, while the latter adopted a positivist approach, looking at existing law of all sorts, national and international, to decant eight principles (...) of CSR. Using a methodological tool from the first book, namely, the macrosocial contract between business and communities, this article updates the list proposed in the second book. As societal expectations evolve in time, emerging principles are included in the amended list, such as meeting tax obligations, refraining from taking advantage of disaster-struck communities, and prioritizing the human in the age of artificial intelligence. The mixed approach (ethical, contractarian, and positivist) allows introducing the 10 principles as “commandments”: initial reasonable content of a macrosocial for business, informed by undisputed ethical principles (hypernorms) and potentially implemented through positive law. (shrink)

A genuine commitment to ethics and compliance (E&C) programs means that top management adopt them for what they represent and not for other purposes. Only then can they truly build socially responsible behavior and a successful and sustainable business, as stated in the latest international standard for compliance management practice (ISO 37301:2021), which we found to be consistent with a new business narrative as conceptualized in Freeman's work. However, it also requires that top managers place a moral value on these (...) practices, rather than simply using them for instrumental reasons. Building on Kohlberg's six stages of moral development as applied to managers' moral thinking, this manuscript offers a model to explain how top managers' moral valuing of these practices varies along a moral reasoning continuum, resulting in four distinct modes. It also theorizes that each mode of moral valuing yields an archetype of E&C programs. It thus offers a new approach that contributes to the business ethics and management literature by incorporating a morally grounded perspective on the adoption and implementation of E&C practices and how it might shape their features and characteristics. It also aims to improve professional practice and business contributions to Freeman's ideas through genuine ethics‐based E&C programs. (shrink)

The worldwide problem of corruption is one that requires greater knowledge about responsible leadership. Based on the literature on responsible leadership, developmental psychology, and moral development, the purpose of our study is to understand the constructions of the motivational drivers behind the behaviors of a responsible leader. Using biographical and narrative methodologies, we analyzed the individual motivational drivers of Carlos Cavelier, a recognized responsible leaders who grew up and works in Colombia, a social/economic context characterized by institutional fragility and corruption. (...) Our findings suggest that the coherence between the immediate environments of development of the future leader, configured optimal environments in which the leader developed the moral conscience that guides his behavior as a responsible leader. Our study points out the need not to take the development of responsible leaders for granted, and presents propositions that allow for a deeper understanding of the micro‐foundations of responsible leadership, highlighting the importance of the contexts in which leaders are raised and in which they develop. Thus, our study has the potential to be heuristic and generative of future studies. (shrink)

The purpose of this essay is to suggest that one of the dominant modes of thought in our society is a profound mistrust and misunderstanding of the role of business. A dominant myth in society is that business occupies the moral low ground, separate from ethics or a moral point of view. This position is characterized as the “business sucks” story, and the essay shows how the enactment of this story underlies business thinking among managers and business theorists. The essay (...) concludes with a suggestion to rethink and reinvent this story along more realistic and more empowering lines. Values based capitalism, or stakeholder capitalism, offers a better way to understand the complex role that business does and should play in modern society. (shrink)

Purpose‐driven businesses have a stated objective to contribute to the welfare of society and the planet alongside generating shareholder value. As interest in purpose‐driven businesses grows, an emerging “purpose ecosystem” of advisers, investors, and enablers offers different types of support for businesses wanting to transition to sustainability. This paper examines how the transition towards purpose‐driven business in Australia and the United Kingdom requires addressing challenges facing this support ecosystem at three levels. First, at the individual level where support providers need (...) to build the capabilities of managers who are experiencing tensions around integrating societal and environmental purpose while facing pressure for maximizing shareholder value. Second, the support providers working within the purpose ecosystem offering professional advice and finance face their own tensions between environmental or social objectives and commercial pressures. Third, there are challenges facing actors in the ecosystems aiming to change the wider policy and institutional environment but facing lobbying from those wanting to keep “business as usual.” We identify practical implications for those parts of the purpose‐driven business ecosystem providing support. This includes building capabilities to combine social, environmental, and commercial purpose; coordination among support providers; and creating an institutional environment to avoid “purpose wash.”. (shrink)

The aim of this paper is to discuss popular conceptions of business ethics and their relationship to the problem of racial injustice by way of reviewing Spike Lee’s (1989) _Do the Right Thing_. Taking place on one day in late 80’s Bedford-Stuyvesant, and set against a tense decade of racial conflict in New York City, Spike Lee’s masterpiece has deeply influenced American discourse on race, capturing many of the complex interpersonal dynamics that are both constitutive and consequence of American racial (...) hierarchies. Instead of focusing on shareholders and stakeholders, I argue that _Do The Right Thing_ suggests a more political understanding of business’s ethical obligations: a business’s ethical obligations don’t emanate from internal relations but from its social and political position. I conclude by discussing a more recent film, Steve McQueen’s (2020) _Mangrove_. Like _Do the Right Thing_, _Mangrove_ also focuses on a business that is at the center of an urban racial conflict, but which stands in a very different relationship to this tension, providing an alternative illustration of business ethics informed by political and social positioning. (shrink)

There is increasing attention to the idea of bringing about what is termed a wellbeing economy, and recognition that a coherent story or narrative is important in countering the strength of today’s dominant economic narrative--neoliberalism. Yet there has been relatively little consensus on what such an idea might mean in practice, despite the proliferation of many different initiatives attempting to bring such an economy about. Many of these initiatives have allied with an aggregator called WEAll, the Wellbeing Economy Alliance. In (...) an effort to determine what new economics/next economies initiatives mean by wellbeing economy, this study assesses the statements provided by WEAll allies to WEAll when seeking membership to see whether there is a consistent narrative about wellbeing economy that emerges. Four nuanced, yet related, versions of the wellbeing economy narrative emerged. “Transformation” is mainly a critique of business as usual, emphasizing transformation towards a wellbeing economy that critiques neoliberalism and emphasizes wellbeing of all people. The Nature-Centric or Planetary Boundaries perspective takes a more ecological perspective, emphasizing humanity’s need to live and operate within planetary boundaries. The Good Life or People-Centric perspective offers a people-oriented narrative that emphasizes sustainability while ensuring that basic needs of all are met. The Integrated perspective is an integrated life-centered perspective that combines these interests and focuses on the wellbeing of both people and planet, recognizing the complexity and holistic nature of that task. (shrink)

As the need for business to address pressing social and ecological issues intensifies, so does the importance of enhancing the development of sustainable marketing. The current dominant approach to sustainable marketing is based on a Triple Bottom Line (TBL) profit‐centric worldview, which suggests that firms can simultaneously improve their financial well‐being as they reduce negative social and ecological externalities. However, whereas the scope of TBL marketing is limited to sustainability initiatives that enhance profits, there is a growing need for—and interest (...) in—developing a sustain‐centric approach to marketing that relaxes the need to maximize financial well‐being in order to optimize social and ecological well‐being. Even so, because of the dominance of the profit‐centric worldview, hallmarks of sustain‐centric marketing practices remain under‐developed and may even lend themselves to becoming inauthentically mimicked on a piecemeal basis by greenwashing profit‐centric firms. We provide an exploratory empirical study of marketing practices evident in two sustain‐centric firms and draw implications to advance theory for both sustain‐centric and profit‐centric marketing. (shrink)

Education for Sustainable Development supports processes of change in complex socio-ecological systems. Where and how this change takes place are important considerations as we seek to enhance our capacity to challenge existing systems and thus produce and reproduce our life activities in more sustainable ways. This paper considers the possibilities for change in a system as deeply embedded in our social and material existence as capitalism. It rejects the notion that there is no alternative and considers the implications of Evald (...) Ilyenkov’s exploration and development of the Dialectic of the Ideal as the basis for change. I reflect on Ilyenkov’s work in relation to a recent national study into the potential for creating a more sustainable banking sector and the associated education and skills development requirements. The individualising response to sustainability challenges is rejected through the opening up of a more nuanced understanding of the role of contradictions evident in the reciprocal movement and mutual transformations between society and the material structures, both natural and built, within which society exists. (shrink)

This study explores the underlying drivers of US public pension funds’ tendency to tilt their portfolios towards companies with stronger corporate social responsibility. Studying the equity holdings of large, internally managed US state pension funds, we find evidence that the political leaning of their beneficiaries and political pressures by state politicians affect funds’ investment decisions. State pension funds from states with Democratic-leaning beneficiaries tilt their portfolios more strongly towards companies that perform well on CSR issues, and this tendency is intensified (...) when the state government is dominated by Democratic state politicians. Moreover, we find that funds which tilt their portfolios towards companies with superior CSR scores generate a slightly higher return compared with their counterparts. Overall, our findings indicate that funds align their investment choices with the financial and non-financial interests of their beneficiaries when deciding whether to incorporate CSR into their equity allocations. (shrink)

Corporate social responsibility (CSR) is about the moral purpose of business and its proper relationship to society. We map the logical structure of CSR—its canonical core—and identify the view of CSR that is most consistent with CSR as driven by moral purpose as Moral CSR (CSRM). The numerous perspectives of CSR, which we term CSR memes, are complements to CSRM. A meme is an idea or usage diffusing within communities. Moral norms and what we term normatively injunctive warrants are implicit (...) in many CSR memes but have received a relative lack of explicit and systematic attention. A norm is an accepted standard for behavior. A warrant is an authoritative or authorizing instruction for behavior. All CSR memes contain three elements—a corporate actor, a relation, and nonmoral normative warrants, which we term constructive warrants. We argue that any CSR meme should include a fourth element—moral normative (injunctive) warrants linking explicitly to moral reasoning. Through sorting key CSR memes by their epistemological and compositional characteristics, we reveal the paucity of explicit attention to injunctive warrants. We resort memes according to social gains or losses, which are the outcomes of societal demand for and business supply of CSR. This analysis yields two proposed improvements for CSR reasoning. The first is a clearer picture of variable use of the term CSR in extant research. The second is how scholars can incorporate more explicitly moral elements of CSR in future work. (shrink)