Sumantra Ghoshal’s condemnation of “bad management theories” that were “destroying good management practices” has not lost any of its salience, after a decade. Management theories anchored in agency theory (and neo-classical economics generally) continue to abet the financialization of society and undermine the functioning of business. An alternative approach (drawn from a more classic institutional, new ecological, and refocused ethical approaches) is reviewed.

Large tracts of European rural land, mostly in the less favored areas (LFA), are devoted to low-inputs and large scale grazing systems (LSGS) with potential environmental and social functions. Although these LSGS may provide harbor for a good part of European nature values, their continuity is facing contrasting threats of intensification and abandonment. These areas, however, may be characterized by particular grazing structures and social dynamics of change that should be unveiled prior to attempts to devise rural development strategies or (...) to adapt policy frameworks in general. To wit, stakeholder interactions and legal and institutional processes are described and analyzed for the cereal-sheep system of Castile-La Mancha (CLM) in the central Iberian plain. Farmers and pastoralists still share the use of the land, but their roles and interests have changed over time, and particularly in the last 50 years. Arable farming, mainly cereal cropping, has followed an intensification path, partially tempered by the environmental constraints of the Castilian plain. Extensive pastoralism is still a secondary option of land use; in the main, sheep farmers depend on, and look to, the management practices of arable farmers. A mixed cereal and sheep operation may deliver environmental and economic benefits, but successful implementation of this strategy is only possible when the system serves the needs of both types of stakeholders. Paradoxically, the main drivers of change in the countryside overall are arrayed against this sensible and traditional agricultural system. We argue that the recent legal and institutional frameworks do not favor social cohesion and that policy-support schemes of the European Union (EU) have been, and continue to be, devised without taking into account the particular structures and social dynamic of the farming system. (shrink)

Millions of people in the developing world lack access to curative drugs. Pogge identifies the cause of this problem as a lack of redistribution across borders. In contrast, this article shows that institutional shortcomings within developing countries are the main issue. These different explanations are the result of diverging analytic approaches to ethics: a cosmopolitan approach versus an ordonomic approach. This article compares both approaches with regard to how they conceptualize and propose to solve the problem of providing life-saving pharmaceuticals (...) to the poor in developing countries. (shrink)

Stakeholder theorists distinguish between normative stakeholders, those who gain moral standing by making contributions to the firm, and derivative stakeholders, those who can constrain the corporate association even though they make no contribution. The board of directors has the legal authority to distinguish among these stakeholder groups and to distribute rights and obligations among these stakeholder groups. To be sure, this stakeholder formulation appropriately seizes on the firm’s voluntary, associative character. Yet, the firm’s constituents contribute assets and incur risks to (...) participate in market, economic activities. And, as such, the firm’s “stakeholders” must share an imperfect language to assist in making two key economic decisions: (1) who are the legitimate and who are the derivative stakeholders; and (2) who should sit on the board? Still, stakeholder theorists have good reason to be skeptical of neoclassical economics. Its assumptions that all act opportunistically and that all can calculate rationally and fully hardly correspond to studies on the managerial experience of corporate coordination. However, advances in behavioral law and economics now provide a cogent economic logic that readily fits into a stakeholder mode. In brief, we argue that (1) the firm’s economic purpose designates legitimacy to core stakeholders, to those who add value, assume unique risk, and can incur harm; (2) the board serves as the principal who coordinates these core stakeholders to sustain competitive advantage and new wealth creation; and (3) state incorporation law, Delaware in particular, reinforces the board’s function. These, in turn, supply selection criteria for board membership. We aim to synchronize concepts from behavioral law and economics with stakeholder theory. (shrink)

Abstract:In providing an ethical guide for managers, the Clarkson Principles offer one part of a possible professional code, namely, that managers have a fiduciary duty—a duty of loyalty of the corporation’s stakeholders. However, the Clarkson Principles contain little advise for managers when they act politically to fashion the regulatory framework in which stakeholders negotiate. When managers participate in these arenas, I argue that they ought to assume a second fiduciary duty—a duty of loyalty to fair bargaining. Where the first duty (...) of loyalty pertains to the firm’s “constituents,” the second refers to the firm’s “constitution”—to the rules by which the firm’s stakeholders bargain and to the background conditions that distribute advantages. Together, these two fiduciary duties establish the large good—development as freedom—from which a managerial profession can mature. (shrink)

What is the justification or the ground of responsibility involved by global justice through global institutional reform? In other words, even if global justice seems to be defined as a specific aim given by what we normally think to be right or just solutions to the global human problems, this does not preclude the necessity of taking into account the difficulties and questions the operational level of global justice raises, institutionally and organizationally speaking. The cultural constraints, the diversity and the (...) nature of problems and so on and so forth, concerning the legitimacy and, also, the social impact of the adopted solutions, are another type of difficulties. My interest here is to analyse the reasons or grounds of the global modalities for solving problems of global justice. The reasons for this enterprise are twofold and, in my opinion, inevitably interconnected: on the one side, the fact that globalization of justice is by itself a difficult concept, and on the other side, that the understanding of global justice rather in an Occidental or democrat liberal way brings specific difficulties both of conceptual and operational nature, requiring further confrontations with other desiderata or other comprehensive doctrines and starting from this, consistent critical analyses. (shrink)

Power and organizational hierarchies are ubiquitous to social institutions that form the foundation of modern society. Power differentials may act to constrain or enhance people’s ability to make good ethical decisions. However, little scholarly work has examined perceptions of this important topic. The present effort seeks to address this issue by interviewing academics about hypothetical ethical problems that involve power differences among those involved. Academics discussed what they would do in these scenarios, often drawing on their own experiences. Using a (...) think-aloud protocol, participants were prompted to discuss their reasoning and thinking behind their ethical decisions. These interview data were content analyzed using a semantic analysis program that identified a number of distinct ways that academics think about power differences and abuses in ethical situations. Implications of these findings are discussed. (shrink)

Supporters of political realism and republicanism as well as students of political feasibility and non-ideal theory progressively focus on the dimension of power in the political relation. Yet we lack the theoretical framework to represent these features of power. In this essay, I take a first step towards designing the necessary conceptual tools for such a framework by analyzing the relations between the concepts of power and normativity that define the political relation. Adopting a ‘methodological cynicism’, I analyse the reasons (...) that motivate cynics who are only interested in power to obey a norm against force or violence and to seek legitimacy. This allows us to characterize external or mediate relations between power and normativity (such as the relation underlying political theory’s ambition of offering normative guidance for power) and identify internal and immediate relations between power and normativity. (shrink)

How can the relative inability of social theory to shed light on the horrors of the late twentieth century be reconciled with the fact that both history and social science earlier devoted themselves to arriving at an understanding of war and violence in the modern world? An answer is provided in five steps. First, the disciplinary evolution of the social science disciplines tends to make them oblivious of important parts of their own heritage and opens up a chasm between the (...) social and the historical sciences. Second, the contribution of military experiences to the formation of the policy orientation of modern social sciences renders them less rather than more capable of reflecting upon war as a societal and historical phenomenon. Third, rational choice theory and historical sociology are relatively unable to arrive at an understanding of the cultural constitution of modernity and share a naturalistic conception of war and violence. Fourth, at least five features of war in the late twentieth century transcend the experiences of modernity. Fifth, in order to grasp these features conceptually, social theory has to acknowledge different varieties of modernity seriously, to elaborate a historical phenomenology of the experiences of war and violence, and to arrive at an actionbased explanation of wars in their societal and historical context. (shrink)