Considering recent theoretical discussions about the concept of moral legitimacy, this study advances our understanding of its performance consequences. Specifically, it uncovers the mediating role of moral legitimacy in the relationship between regulations and industry performance. Our analysis of the U.S. state-level data on regulations in a controversial industry between 1994 and 2010 yields four significant findings. The results show that regulations not only decrease performance but also negatively impact moral legitimacy. Moreover, this study provides empirical evidence that moral legitimacy (...) is positively related to industry performance, providing much-needed direct support for this premise. Importantly, the results indicate that moral legitimacy mediates the effect of regulations on performance, but only when regulations are aligned with moral values. Overall, this study extends our understanding of how regulations influence moral legitimacy, and in turn impact industry performance. (shrink)

Controversies around large-scale development projects offer many cases and insights which may be analyzed through the lenses of corporate social (_ir_)responsibility (CS_I_R) and business ethics studies. In this paper, we confront the CSR narratives and strategies of _WeBuild_ (formerly known as _Salini Impregilo_), an Italian transnational construction company. Starting from the Global Atlas of Environmental Justice (EJAtlas), we collect evidence from NGOs, environmental justice organizations, journalists, scholars, and community leaders on socio-environmental injustices and controversies surrounding 38 large hydropower schemes built (...) by the corporation throughout the last century. As a counter-reporting exercise, we code (un)sustainability discourses from a plurality of sources, looking at their discrepancy under the critical lenses of post-normal science and political ecology, with environmental justice as a normative framework. Our results show how the mismatch of narratives can be interpreted by considering the voluntary, self-reporting, non-binding nature of CSR accounting performed by a corporation wishing to grow in a global competitive market. Contributing to critical perspectives on political CS(I)R, we question the reliability of current CSR mechanisms and instruments, calling for the inclusion of complexity dimensions in and a re-politicization of CS(I)R accounting and ethics. We argue that the fields of post-normal science and political ecology can contribute to these goals. (shrink)

Although there is a vast body of work on legitimacy, we still have a limited understanding of the discursive aspects of moral legitimation. This is surprising considering the increase in morally laden societal discussions, for example related to understanding gender, rights and regulations during a pandemic, political scandals and ethics of global business amongst others. In particular, from an organization studies perspective, we lack knowledge on how journalists negotiate moral legitimation of controversial organizational decisions such as closures or shutdown decisions (...) related to global industrial restructuring. Therefore, drawing on the critical discourse studies tradition, we examine the media coverage of controversial shutdowns in Finland over the past 2 decades. Our analysis suggests three moral legitimation types: moral engaging, moral distancing and moral surrendering. These types involve specific discursive moralization practices and strategies, and they each paint a different picture of the moral options, responsibility, and inevitability in these decisions. These types can be found in the same texts supporting each other, but they also help us understand how legitimation may involve a pattern where the most explicit reflections (moral engagement) are followed by more indirect (moral distancing) and less apparent but very powerful (moral surrendering) forms of legitimation. By so doing, we also offer a heuristic that can, with due caution, be used for analyzing other texts on adverse effects of globalization or events that might include moral and ideological conflicts. (shrink)

This article examines the legitimacy attached to different types of multi-stakeholder data partnerships occurring in the context of sustainable development. We develop a framework to assess the democratic legitimacy of two types of data partnerships: open data partnerships and closed data partnerships. Our framework specifies criteria for assessing the legitimacy of relevant partnerships with regard to their input legitimacy as well as their output legitimacy. We demonstrate which particular characteristics of open and closed partnerships can be expected to influence an (...) analysis of their input and output legitimacy. (shrink)

Entry of new organizations, including multinational enterprises from emerging markets, raises the ethical question of will they benefit society. The concept of legitimacy answers this question because it is the overall assessment of the appropriateness of organizational ends and means. Moreover, gaining legitimacy enables EMNEs to succeed in new host countries. Past work examined collective level indicators of the legitimacy of MNEs, but recent research recognizes the importance of individuals’ perceptions as the micro-foundation of legitimacy. This study first uses new (...) pragmatism, deontology, and utilitarianism to demonstrate that legitimacy is fundamentally an ethical concept—a perspective that has been overlooked in management research. Second, this study uses a seven-step procedure to develop and validate a measure of individuals’ perceptions of the legitimacy of Chinese EMNEs operating in The Netherlands, a developed country. Six dimensions of legitimacy were identified. The study also finds support for this legitimacy judgment process linking the dimensions: validating knowledge → propriety judgments → generalized judgment. This work provides additional micro-foundations to research on legitimacy and contributes to the ongoing process of construct validation. Future research could use the validated measure in other settings and use specific ethical theories in depth to refine the concept of legitimacy. (shrink)

This article connects the previously isolated literatures on corporate citizenship and corporate political activity to explain how firms construct political influence in the public sphere. The public engagement of firms as political actors is explored empirically through a discursive analysis of a public debate between the mining industry and the Australian government over a proposed tax. The findings show how the mining industry acted as a corporate citizen concerned about the common good. This, in turn, legitimized corporate political activity, which (...) undermined deliberation about the common good. The findings explain how the public sphere is refeudalized through corporate manipulation of deliberative processes via what we term corporate citizenspeak—simultaneously speaking as corporate citizens and for individual citizens. Corporate citizenspeak illustrates the duplicitous engagement of firms as political actors, claiming political legitimacy while subverting deliberative norms. This contributes to the theoretical development of corporations as political actors by explaining how corporate interests are aggregated to represent the common good and how corporate political activity is employed to dominate the public sphere. This has important implications for understanding how corporations undermine democratic principles. (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)

We propose that corporations should be subject to a legal obligation to identify and internalise their social costs or negative externalities. Our proposal reframes corporate social responsibility as obligated internalisation of social costs, and relies on reflexive governance through mandated hybrid fora. We argue that our approach advances theory, as well as practice and policy, by building on and going beyond prior attempts to address social costs, such as prescriptive government regulation, Coasian bargaining and political CSR.

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)

“Responsible lobbying” is an increasingly salient topic within business and management. We make a contribution to the literature on “responsible lobbying” in three ways. First, we provide novel definitions and, thereby, make a clear distinction between lobbying and corporate political activity. We then define responsible lobbying with respect to its content, process, organization, and environment, resulting in a typology of responsible lobbying, a conceptual model that informs the rest of the paper. Second, the paper provides a thematic overview of the (...) current literature underpinning lobbying and the responsible firm, and the underlying paradigms informing this literature. Third, the paper makes specific suggestions for a future research agenda, ending with a consideration of methodological implications of such research. (shrink)

Political theories in general and deliberative democracy in particular have become quite popular in business ethics over the past few years. However, the model of deliberative democracy as generally referred to in business ethics is only appropriate for conceptualizing interaction between business and society which occurs within a context which is more or less institutionalized. The model cannot account for “unregulated” interaction between business and civil society. The authors argue that scholars need to resort to the so called “critical strand” (...) of deliberative democracy if we want to conceptualize interaction that happens without the involvement of decision-making institutions as political action in a deliberative sense. Adopting this approach allows us to identify cases in which unregulated interaction between business and civil society is preferable over institutionalization. (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)

In this article, we outline a unique conceptual framework connecting legitimacy types (Suchman, 1995), theories of corporate responsibility (Brummer, 1991), and levels of organizational moral development based on Kohlberg's (1971) moral development stages. In addition, based on Global Reporting Initiative (GRI) categories, we found empirical support for our framework, by content analyzing Fortune 500 corporate citizenship reports from four different industries (i.e., chemicals, motor vehicle/auto parts, pharmaceutical, and utilities), at three data points (i.e., 2002, 2007, and 2012). Our analysis indicates (...) that motor vehicle/auto parts and chemicals industries are at a higher developmental level, and portray moral legitimacy along with social demandingness corporate responsibility in recent years; while the pharmaceutical and utilities sectors are at a lower developmental level, showing signs of pragmatic legitimacy, alongside classical and stakeholder corporate responsibility strategies. This article contributes to the current organizational moral development literature by developing and finding empirical support of a conceptual framework of organizational moral development, legitimacy, and corporate responsibility. In particular, our findings provide a deeper understanding of the differences in moral development levels across four focal industries over a 10‐year timespan. (shrink)

This article analyzes the process of organizing collective action by studying the role of the organizational platform provided by the United Nations–backed Principles for Responsible Investment (PRI) initiative in supporting institutional investors’ collaborative engagement with corporations on environmental, social, and governance issues. The authors combine stakeholder and collective action theory to explain how institutional investors influence corporations through collective engagement. A unique access to data from the PRI secretariat on two cases of collaborative campaigns allows evaluation of our framework. The (...) findings clarify how investors enhance their sources of power, legitimacy, and urgency and attract managers’ attention through collaborative engagement, and show how they manage these attributes to reshape the legitimacy and urgency of their claims in the eyes of managers. Our data suggest that “enabling organizations” such as the PRI initiative facilitate the emergence of collective action by lowering barriers to entry and providing a mobilizing structure, support collaborative efforts by adding their own legitimacy, normative power, and persistence to the collaborative engagement, and create conditions for a lasting dialogue between investors and managers by providing a hybrid organizational space. (shrink)

This study explores why and how firms respond to social demands through philanthropic giving in the context of a severe natural disaster. Drawing on Marquis and Qian's organizational response model to government signals, we integrate resource dependence theory and institutional theory to build a two-step model of organizational response to social needs, in situations of disaster relief. We argue that firms depending more on the government for support are more likely to donate in disaster relief, while firms who receive more (...) scrutiny from the government and the general public and firms having more slack resources are likely to donate more. Evidence from Chinese listed companies' donations to the 2008 Sichuan earthquake largely supports our predictions. This study provides a more precise understanding of the corporate philanthropic decision process, decoupling the drivers of philanthropic giving, and those determining the amount given. Theoretical and practical implications are suggested. (shrink)

Although establishing gender equality in board and managerial positions has recently become more important for organizations, companies with low levels of gender diversity seem to perceive an ethical dilemma regarding the ways, in which they attempt to attain it. One way that organizations try to move toward gender equality is through the use of their corporate websites to manage potential applicants’ impressions of their current levels of, and actions to improve, gender diversity. The dilemma is whether to truthfully communicate their (...) low level of gender diversity, conceal it, or exaggerate it. On the one hand, organizations that are truthful may find it difficult to achieve equality because women are less attracted to companies that lack diversity. On the other hand, organizations that are untruthful risk their moral legitimacy. The present work investigates gender diversity-related communication on the corporate websites of 99 major German companies. Based on theoretical work on minority attraction, we apply an organizational impression management taxonomy to guide our in-depth content analysis. With this approach, we hope to advance the understanding of how the issue of gender diversity is presented on corporate websites, which is useful for both organizational decision makers as well as diversity researchers. We found that although gender diversity-related communications on corporate websites contain both assertive and defensive organizational impression management tactics, as well as a third type of tactic we refer to as “acknowledgement,” assertive tactics were used more frequently. We argue the existence of a paradox whereby organizations use assertive impression management tactics to maintain pragmatic legitimacy but compromise their moral legitimacy by doing so. Furthermore, we argue that moral legitimacy can be maintained or restored through the sincere use of defensive impression management tactics and acknowledgement. (shrink)

ABSTRACT:The primacy of shareholder demands in the traditional theory of the firm has typically excluded marginalised stakeholder voices. However, shareholders involved in social shareholder engagement (SSE) purport to bring these voices into corporate decision-making. In response to ethical concerns about the legitimacy of SSE, we use the lens of discourse ethics to provide a normative analysis at both action and constitutional levels. By specifying three normative questions, we extend the analysis of SSE to identify a political role for shareholders in (...) pursuit of the common good. We demonstrate the desirability for SSE to promote regulatory/institutional change to guarantee marginalised stakeholders a voice in corporate decisions that affect them. The theory of SSE we propose thus calls into question the stark separation of the political and economic spheres and reveals an underlying tension, often overlooked, within the responsible investment literature. (shrink)

Based on a survey and content analysis of 462 peer-reviewed academic articles over the period 1990–2014, this article reviews theories related to the external drivers of corporate social responsibility and the internal drivers of CSR that have been utilized to explain CSR. The article discusses the main tenets of the principal theoretical perspectives and their application in CSR research. Going beyond previous reviews that have largely failed to investigate theory applications in CSR scholarship, this article stresses the importance of theory-driven (...) explanations of CSR and the complementarity of different theories. The article demonstrates that the current mainstream theorizing of CSR is dominated by theories related to the external drivers of CSR and is less developed with regard to the internal dynamics. The article outlines several productive avenues for future research: the need for multi-theory studies and more research at multiple levels of analysis, particularly at the individual level of analysis. It suggests that CSR scholarship can benefit from combining theoretical insights from a range of established theoretical lenses such as institutional theory and RBV, and can gain new insights from theoretical lenses such as Austrian economics and micro-level psychological theories. (shrink)

Recently, the increasing interest in responsible leadership (RL) has produced a research field rich in theoretical and conceptual potential, with diverse research foci, theoretical foundations, and methodological approaches. While these developments have demarcated the field from other leadership-oriented disciplines, they have equally courted fragmentation and ambiguity in terms of the field’s positioning within the greater body of leadership studies. To map the theoretical, methodological, and empirical state of the art of the RL field, we outline recent developments and delineate important (...) research gaps and directions for future theory development and empirical research. We emphasize the transition of RL research from micro-level perspectives with normative roots to research spanning multiple levels of analysis, vis-à-vis both antecedents and outcomes. We discuss the implications of our mapping, highlighting the necessity of not only conceptualizing RL across multiple levels of analysis, but also to actively focus on interactions among RL antecedents and outcomes across these levels. Through these, we aim to contribute to the field by strengthening its conceptual foundations and anchoring it more clearly within leadership studies overall. (shrink)

This article provides a historical contextualization of Corporate Social Responsibility and its political role. CSR, we propose, is one form of business–society interactions reflecting a unique ideological framing. To make that argument, we compare contemporary CSR with two historical ideal-types. We explore in turn paternalism in nineteenth century Europe and managerial trusteeship in early twentieth century US. We outline how the political responsibilities of business were constructed, negotiated, and practiced in both cases. This historical contextualization shows that the frontier between (...) economy and polity has always been blurry and shifting and that firms have played a political role for a very long time. It also allows us to show how the nature, extent, and impact of that political role changed through history and co-evolved in particular with shifts in dominant ideologies. Globalization, in that context, is not the driver of the political role of the firm but a moderating phenomenon contributing significantly to the dynamics of this shift. The comparison between paternalism, trusteeship, and contemporary CSR points to what can be seen as functional equivalents—alternative patterns of business–society interactions that each correspond, historically, to unique and distinct ideological frames. We conclude by drawing implications for future theorizing on CSR and stakeholder democracy. (shrink)

The purpose of cause-related marketing (CRM) is to publicise and capitalise on a firm's corporate social performance (CSP) by enhancing its legitimacy in the eyes of its stakeholders. This study focuses on the firm's internal stakeholders - i.e. its employees - and the extent of their involvement in the selection of social campaigns. Whilst the difficulties of managing a firm that has lost or damaged its legitimacy in the eyes of its employees are well known, little is understood about the (...) extent to which managers and their social partners listen to and involve their employees in the legitimation process. Through telephone interviews with non-profit organisations and senior managers of service sector firms, the extent of employee involvement in CRM campaigns and the perceived benefits of doing so are investigated. Amongst other things, we find that (i) the extent of employee participation varies significantly across firms; (ii) larger CRM campaigns tend to be managed centrally with relatively less employee participation than smaller ones and (iii) financial services firms are more likely to make CRM decisions centrally, with relatively less employee participation than retail services firms. (shrink)

Globalization arguably generated a governance gap that is being filled by transnational rule-making involving private actors among others. The democratic legitimacy of such new forms of governance beyond nation states is sometimes questioned. Apart from nation-centered democracies, such governance cannot build, for example, on representation and voting procedures to convey legitimacy to the generated rules. Instead, alternative elements of democracy such as deliberation and inclusion require discussion to assess new instruments of governance. The recently published standard ISO 26000 is an (...) interesting example of transnational governance. ISO 26000 was developed in a lengthy multiorganizational process for the purpose of giving guidance on the social responsibility of organizations. By assessing the specific case of ISO 26000, this study sheds light on the question of how legitimacy beyond nation-state democracy is ensured or constricted. Centering on the idea of deliberate democracy and democratic legitimacy, the study offers in-depth insights on the normative legitimacy of the development process of ISO 26000. Positioned on the interface of business studies and public policy, this article contributes to the academic literature on transnational governance and on the role of multistakeholder processes in shaping the role of business in society. (shrink)

Online service providers —such as AOL, Facebook, Google, Microsoft, and Twitter—significantly shape the informational environment and influence users’ experiences and interactions within it. There is a general agreement on the centrality of OSPs in information societies, but little consensus about what principles should shape their moral responsibilities and practices. In this article, we analyse the main contributions to the debate on the moral responsibilities of OSPs. By endorsing the method of the levels of abstract, we first analyse the moral responsibilities (...) of OSPs in the web. These concern the management of online information, which includes information filtering, Internet censorship, the circulation of harmful content, and the implementation and fostering of human rights. We then consider the moral responsibilities ascribed to OSPs on the web and focus on the existing legal regulation of access to users’ data. The overall analysis provides an overview of the current state of the debate and highlights two main results. First, topics related to OSPs’ public role—especially their gatekeeping function, their corporate social responsibilities, and their role in implementing and fostering human rights—have acquired increasing relevance in the specialised literature. Second, there is a lack of an ethical framework that can define OSPs’ responsibilities, and provide the fundamental sharable principles necessary to guide OSPs’ conduct within the multicultural and international context in which they operate. This article contributes to the ethical framework necessary to deal with and by endorsing a LoA enabling the definition of the responsibilities of OSPs with respect to the well-being of the infosphere and of the entities inhabiting it. (shrink)

The aim of this article is to discuss quantitative content analysis as established in communication sciences as a method for research in business ethics. We argue that communication sciences and business ethics are neighboring disciplines, which allow the transfer of quantitative content analysis from communication sciences to business ethics. Technically, quantitative content analysis can be applied through human as well as software coding. Examples for both applications are provided and discussed. We make reference to the software solutions ‘Leximancer’, ‘Crawdad’, and (...) ‘Wordle’, and examine their suitability and limitations with regard to ethical questions for researching business ethics. We recommend a mixed‐method approach, combining human and software coding. Furthermore, we propose a three‐step process that discusses quantitative content analysis as a method for business ethics, including an ethical research objective, and most importantly, concluding with ethical reasoning and interpretation of the quantitative results. (shrink)

This commentary's claim is that Dänzer's argument does not sufficiently take into account the complexities of the global production of goods, the current corporate responsibility practices and the problems of attributing responsibility to single actors. I argue in favour of a shared responsibility and briefly present a discursive approach for attributing MNE's share of responsibility in global supply chains, which requires obligatory transparency.

The way a company engages with the political process is directly relevant to its ”character,” yet lobbying and corporate social responsibility (CSR) are often seen as separate. Taking a narrative approach, the author examines the automotive industry’s processes around lobbying, in the light of legislation to restrict emissions of CO2from cars in the European Union. The author uses the data generated through interviews to generate a narrative model of political engagement, and to start to apply Basu and Palazzo’s process model (...) of CSR. This article shows competing narratives within the industry, which range from broadly cooperative toward regulatory activity, to broadly instrumental. The author argues that lobbying needs to be included in the scope of corporate citizenship theorizing and discusses changes to corporate character. (shrink)

This article examines the values that underlie notions of sustainability and corporate social responsibility, and how those values influence perspectives on who and what is included in decision-making. The author argues that the epistemologies of economic considerations in industrial practices, and how they are framed by science and technology, make it unlikely that practices towards sustainability will successfully avert expanding global crises unless the circle of inclusion is expanded to include other-than-human life.

Based on the extended conceptualization of corporate citizenship, as provided by Matten and Crane :166–179, 2005), this paper examines the new role of corporations in society. Taking the ideas of Matten and Crane one step further, we argue that the status of corporations as citizens is not solely defined by their factual engagement in the provision of citizenship rights to others. By analysing political and sociological citizenship theories, we show that such engagement is more adequately explained by a change in (...) the self-conception of corporate citizens from corporate bourgeois to corporate citoyens. While the corporate bourgeois acts primarily for private business purposes, the corporate citoyen engages in society, performing civil and political rights and duties. As an intermediate actor in society, shaped by the principle of subsidiary task-sharing, the corporate citoyen undertakes co-responsibility for social and civic affairs and actively collaborates with fellow citizens below, beside and beyond governmental regulation. (shrink)

ABSTRACT:Little theoretical attention has been paid to the question of what obligations corporations and other business enterprises have to the four billion people living at the base of the global economic pyramid. This article makes several theoretical contributions to this topic. First, it is argued that corporations are properly understood as agents of global justice. Second, the legitimacy of global governance institutions and the legitimacy of corporations and other business enterprises are distinguished. Third, it is argued that a deliberative democracy (...) model of corporate legitimacy defended by theorists of political CSR is unsatisfactory. Fourth, it is argued that a Rawlsian theoretical framework fails to provide a satisfactory account of the obligations of corporations regarding global justice. Finally, an ethical conception of CSR grounded in an appropriately modest set of duties tied to corporate relationships is then defended. This position is cosmopolitan in scope and grounded in overlapping arguments for human rights. (shrink)

This article analyses and systematises the repertoires of action and reaction within conflicts between corporations and adversarial campaigns. Particular attention is paid to the parameters that turn conflicts between corporations and their critics into productive or destructive exchanges. Are protest campaigns able to fulfil a function that goes beyond serving as a seismograph for civil society’s concern and discontent? Which are the circumstances that enable conflicts between protest campaigns and corporations to unfold their potential for correcting social deficiencies? The analysis (...) starts by outlining several typologies of confrontational and cooperative repertoires of action. Based on this starting point, a comprehensive analysis of more than 100 campaigns is presented, which systematises the dynamics of conflict between protest campaigns and corporations. An exemplary comparison of two particular conflicts completes the article in order to elaborate on the interplay between confrontation and cooperation. (shrink)

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights (...) the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice. (shrink)

The article advances an understanding of responsible leadership in global business and offers an agenda for future research in this field. Our conceptualization of responsible leadership draws on deliberative practices and discursive conflict resolution, combining the macro-view of the business firm as a political actor with the micro-view of leadership. We discuss the concept in relation to existing research in leadership. Further, we propose a new model of responsible leadership that shows how such an understanding of leadership can address the (...) challenges of globalization. We thereby propose positive outcomes of responsible leadership across levels of analysis. The model offers research opportunities for responsible leadership in global business. (shrink)

We analyse managerial discourse in corporate communication (‘CEO-speak’) during a 6-month period following a legitimacy-threatening event in the form of an incident in a German nuclear power plant. As discourses express specific stances expressed by a group of people who share particular beliefs and values, they constitute an important means of restoring organisational legitimacy when social rules and norms have been violated. Using an analytical framework based on legitimacy as a process of reciprocal sense-making and consisting of three levels of (...) analysis which capture the relationship between text and context, we investigate the discourse used by CEOs in their initial and subsequent accounts of the incident. We find that CEOs aim to negotiate a resolution between their initial account and organisational audiences’ incongruent interpretations of the event by adopting an ad hoc normative attitude to stakeholders. This manifests itself in the strategic use of the discourse of stakeholder engagement as a means of signalling change, yet maintaining the status quo. It suggests that CEOs strategically use discourse to manufacture organisational audiences’ consent regarding the continued operation of the nuclear power plant affected by the incident. Our findings contribute to the critical corporate communication literature which regards corporate narrative reporting as a means of consolidating the private interests of corporations, rather than increasing transparency and accountability. (shrink)

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to provide drinking water for (...) (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories. (shrink)

ABSTRACT:Drawing upon John Rawls's framework inThe Law of Peoples,this paper argues that MNEs have a responsibility to promote well-ordered social and political institutions in host countries that lack them. This responsibility is grounded in a negative duty not to cause harm. In addition to addressing the objection that promoting well-ordered institutions represents unjustified interference by MNEs, the paper provides guidance for managers of MNEs operating in host countries that lack just institutions. The paper argues for understanding corporate responsibility in relation (...) to the specific institutional environment in which MNEs operate. (shrink)

While considerable attention has been given to the harm done to consumers by marketing, less attention has been given to the harm done by consumers as an indirect effect of marketing activities, particularly in regard to supply chains. The recent development of dramatically expanded global supply chains has resulted in social and environmental problems upstream that are attributable at least in part to downstream marketers and consumers. Marketers have responded mainly by using corporate social responsibility (CSR) communication to counter the (...) critique of CSR practice, but these claims of ethical corporate behavior often lack credibility and can result in a backlash against brands. The article argues that more adequate attention to the harmful upstream effects of downstream marketing and consumption decisions requires greater attention to stakeholder marketing and marketer efforts to help create responsible consumers. It concludes by identifying implications for further research in this important emergent area of marketing ethics. (shrink)

Peace through Commerce literature has discussed how business can engage in more responsible behavior in order to mitigate conflict risk and promote conflict resolution. However, in many conflict situations, the question arises at what point does it become impossible for a firm to remain engaged on the ground and still function as an ethical business? This article discusses the role of divestment activist groups in changing institutional norms among MNCs operating in conflict situations. Institutional norms shift from firms conducting "business (...) as usual" without heed to conflict impact, to engagement policies promoting more responsible business practices, to divestment from conflict zones when circumstances are seen to preclude ethical business conduct. Engagement and divestment are explored as tools for discouraging unethical and promoting ethical business activity, considering conflict situations in South Africa and Sudan as case examples. (shrink)

This article develops an "ordonomic" approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to (...) organize mutually advantageous cooperation. Second, business ethics should teach the management competencies necessary to fulfill business's societal mandate. These competencies are optimization competence in the basic game of value creation, governance competence in the meta game of (political) rule setting, and the three discourse-related skills of orientation competence, reception competence, and communication competence necessary for engaging in the meta-meta game. Third, companies can help solve global problems through global corporate citizenship if they participate as political and moral actors in rule-setting processes and rule-finding discourse aimed at laying the foundation for value creation on a global scale. (shrink)

The article offers a critical assessment of an article on “Corporate Legitimacy as Deliberation” by Guido Palazzo and Andreas Scherer in this journal. We share the concern about the precarious legitimacy of globally active corporations, infringing on the legitimacy of democracy at large. There is no quarrel with Palazzo/Scherer’s diagnosis, which focuses on the consequences of globalization and ensuing challenges for corporate social responsibilities. However, we disagree with the “solutions” offered by them. In a first step we refute the idea (...) of a legitimacy of morals, maintaining that morality is a premodern mode of creating legitimacy. Even worse, moral is becoming a dangerous commodity under conditions of fundamental global disagreements and antagonisms. We secondly refute the concept of the “politicized corporation”, maintaining that Palazzo/Scherer disregard the consequences of functional differentiation of modern societies and, in particular, disregard the wisdom of political restraint and constitutional guarantees for the autonomy of different spheres of society. Finally, we refute a seemingly romantic notion of deliberation, maintaining that deliberation and deliberative democracy is a worthy idea, which, however, has no place in the real world of globalized contexts. On the other hand, we also find enough common ground and common concern with Palazzo/Scherer to validate a fruitful discourse. (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)

If it can be argued that companies should engage with social justice advocacy, what factors might deter them from doing so? This question is pursued in a qualitative research study with participants from corporate and social justice organisations. Six inhibiting factors are identified: a lack of understanding of social justice concepts; fear of reputational risk; short-term profit orientation; a compliance mindset; disconnectedness from operating environment; and recognition that business purpose will determine its societal engagement. This research extends the theoretical and (...) practice boundaries of corporate social responsibility, while also advocating for an intensified engagement of management education with social justice in practice. (shrink)

This article shows how the ethical framing of the contemporary issue of modern slavery has evolved in UK construction, a sector in which there is a high risk of labor exploitation. It also examines how these framing dynamics have inhibited the emergence of a common framework of action to deal with the issue. We draw on both framing theory and the literature on the discursive construction of moral legitimacy. Our longitudinal analysis reveals that actors seeking to shape the debate bring (...) their own moral schemes to justify and construct the legitimacy of their frames. Actors cluster their views around five evolving frames: human rights issue (later shifting to hidden crime), moral issue, management issue (later shifting to human moral obligation), social justice issue, and decent work issue—which promote particular normative evaluations of what the issue is, who is responsible, and recommendations for action. Our study contributes to a dynamic and political understanding of the meaning making of modern slavery. We identify the antecedents and conditions that have forestalled the emergence of new patterns of action to tackle modern slavery in the UK construction sector thereby evidencing the effects of the interplay of morally competing frames on field-level change. (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)

The concept of the self and its relation to moral action is complex and subject to varying interpretations, not only between different academic disciplines but also across time and space. This paper presents empirical evidence from a cross-cultural study on the Buddhist and Confucian notions of self in SMEs in Vietnam and Taiwan. The study employs Hwang’s Mandala Model of the Self, and its extension into Shiah’s non-self-model, to interpret how these two Eastern philosophical representations of the self, the Confucian (...) relational self and Buddhist non-self, can lead to moral action. By demonstrating the strengths of the model, emphasizing how social and cultural influences constrain the individual self and promote the social person leading to moral action, the paper extends understanding of the self with empirical evidence of the mechanisms involved in organizational contexts. (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)

While organizations today make extensive use of complex algorithms, the notion of algorithmic accountability remains an elusive ideal due to the opacity and fluidity of algorithms. In this article, we develop a framework for managing algorithmic accountability that highlights three interrelated dimensions: reputational concerns, engagement strategies, and discourse principles. The framework clarifies that accountability processes for algorithms are driven by reputational concerns about the epistemic setup, opacity, and outcomes of algorithms; that the way in which organizations practically engage with emergent (...) expectations about algorithms may be manipulative, adaptive, or moral; and that when accountability relationships are heavily burdened by the opacity and fluidity of complex algorithmic systems, the emphasis of engagement should shift to a rational communication process through which a continuous and tentative assessment of the development, workings, and consequences of algorithms can be achieved over time. The degree to which such engagement is, in fact, rational can be assessed based on four discourse-ethical principles of participation, comprehension, multivocality, and responsiveness. We conclude that the framework may help organizations and their environments to jointly work toward greater accountability for complex algorithms. It may further help organizations in reputational positioning surrounding accountability issues. The discourse-ethical principles introduced in this article are meant to elevate these positioning contests to extend beyond mere adaption or compliance and help guide organizations to find moral and forward-looking solutions to accountability issues. (shrink)

Friedman’s view on corporate social responsibility is often accused of being incoherent and of setting rather low ethical standards for managers. This paper outlines Friedman’s ethical expectations for corporate executives against the backdrop of the strong emphasis he puts on individual freedom. Doing so reveals that the ethical standards he imposes on managers can be strictly deduced from individual freedom and that these standards involve both deontological norms and the fulfillment of particular stakeholder expectations. These insights illustrate the necessity to (...) reconsider how Friedman’s approach relates to other important normative theories of business ethics. Contrasting Friedman’s approach with stakeholder theory and integrative social contract theory—when considering the importance he assigns to individual freedom—shows how and why these approaches differ. Still, the comparison also highlights striking similarities. This paper contributes to a better understanding of Friedman’s position—which is still one of the most influential approaches in business ethics research—because it enables a differentiated look at its strengths and weaknesses. (shrink)

Globally active companies are involved in the discursive construction of moral legitimacy. Establishing normative conformance is problematic given the plurality of norms and values worldwide, and is particularly difficult for companies operating in morally controversial industries. In this paper, we investigate how organizations publicly legitimize the trade of human tissue for private profit when this practice runs counter to deep-seated and widespread moral beliefs. To do so, we use inductive, qualitative methods to analyze the website discourse of three types of (...) organizations that trade in human tissue and are associated with different degrees of moral controversy with respect to tissue procurement and use. Our analysis reveals an object-oriented approach to moral legitimizing centered on the human tissue as a morally disputed good. We find that the website discourse translates human tissue into technology, constructs normative meaning around a dominant instrumental value associated with human-tissue-as-technology, and reproduces and stabilizes this meaning by six discursive mechanisms that amplify and anchor it. Moreover, the use of amplifying and anchoring discourse was greater in organizations associated with greater controversy. The results are consistent with an object-oriented sociality. (shrink)