In this article, we draw on established views of CSR dysfunctionalities to show how and why CSR is regularly observed to be both shaped by and supportive of capitalism. We proceed to show that these dysfunctionalities are maintained by both the pro- and anticapitalist approaches to CSR, both of which imply an ill-defined separation of the economy and society as well an overly strong problem or solution focus on political and economic issues. Finally, we present a post-capitalist approach to CSR (...) that overcomes (1) the ill-defined separation of the economy and society, (2) the capitalist bias towards economic rationalities, and (3) the overidentification of society with its political system; this approach thus helps to manage the abovementioned CSR dysfunctionalities. (shrink)

In this article, I argue that conventional reasoning on corporate social responsibility (CSR) is based on the assumption of a liberal market economy in the context of a nation state. I build on the study of Scherer and Palazzo (Acad Manage Rev 32(4):1096-1120, 2007), developing a number of criteria to identify elements of liberal philosophy in the ongoing CSR debate. I discuss their occurrence in the CSR literature in detail and reflect on the implications, taking into account the emerging political (...) reading of the firm. I conclude that the apolitical framework in the mainstream CSR literature has to be overcome since it does not reflect recent changes in the socio-economic conditions for economic actors in a globalizing world. (shrink)

In this multiple-case study, I analyze the perceived importance of seven categories of institutional entrepreneurs (DiMaggio, Institutional patterns and organizations, Ballinger, Cambridge, MA, 1988 ) for the corporate social responsibility discourse of three multinational companies. With this study, I aim to significantly advance the empirical analysis of the CSR discourse for a better understanding of facts and fiction in the process of institutionalization of CSR in MNCs. I conducted 42 semi-structured face-to-face and phone interviews in two rounds with 30 corporate (...) managers from three multinational companies. The data has been analyzed using qualitative (multiple coding) and quantitative (ANOVA, χ 2 analysis) techniques. The findings indicate that one company is driven by civil society’s influence on consumer’s perception, the second company by direct attacks by civil society, agenda setting organizations and legislators, and the third by the pressure of large customers and legislators. The results suggest that the coping behaviors of MNCs at both extremes of the spectrum of perceived responsible behavior aim at (1) improving the business case for CSR and (2) increasing legitimacy in society, resulting in converging CSR perceptions, and fostering an institutionalization of CSR. (shrink)

Private governance raises important questions about democratic representation. Rule making is rarely based on electoral authorisation by those in whose name rules are made—typically a requirement for democratic legitimacy. This requires revisiting the role of representation in input legitimacy in transnational governance, which remains underdeveloped. Focussing on private labour governance, we contrast two approaches to the transnational representation of worker interests in global supply chains: non-governmental organisations providing representative claims versus trade unions providing representative structures. Studying the Bangladesh Accord for (...) Fire and Building Safety, we examine their interaction along three dimensions of democratic representation: 1) creating presence, 2) authorisation, and 3) accountability to affected constituents. We develop a framework that explains when representative claims and structures become complementary but also how the politics of input legitimacy shapewhoseinterests get represented. We conclude by deriving theoretical and normative implications for transnational representation and input legitimacy in global governance. (shrink)

The United Nations Global Compact – which is a Global Public Policy Network advocating 10 universal principles in the areas of human rights, labor standards, environmental protection, and anticorruption – has turned into the world's largest corporate responsibility initiative. Although the Global Compact is often characterized as a promising way to address global governance gaps, it remains largely unclear why this is the case. To address this problem, we discuss to what extent the initiative represents an institutional solution to exercise (...) global governance. We suggest that new governance modes, which have arisen in the context of globalization, often adopt a multiactor, multilevel, and network-based approach. We then analyze how far the Global Compact's institutional design reflects this multiactor, multilevel, and network-based steering mode. Drawing on this discussion, we offer suggestions regarding how the initiative can be further developed. (shrink)

The United Nations Global Compact – which is a Global Public Policy Network advocating 10 universal principles in the areas of human rights, labor standards, environmental protection, and anticorruption – has turned into the world's largest corporate responsibility initiative. Although the Global Compact is often characterized as a promising way to address global governance gaps, it remains largely unclear why this is the case. To address this problem, we discuss to what extent the initiative represents an institutional solution to exercise (...) global governance. We suggest that new governance modes, which have arisen in the context of globalization, often adopt a multiactor, multilevel, and network-based approach. We then analyze how far the Global Compact's institutional design reflects this multiactor, multilevel, and network-based steering mode. Drawing on this discussion, we offer suggestions regarding how the initiative can be further developed. (shrink)

This article contributes to the debate about the political role of the business firm. The article clarifies what is meant by the “political” role of the firm and how this political role relates to its economic role. To this end, the authors present an ordonomic concept of corporate citizenship and illustrate the concept by way of comparison with the Aristotelian idea of individual citizenship for the antique polis. According to our concept, companies take a political role if they participate in (...) rule-setting processes and rule-finding discourses. Though this political role of the corporation is in principle ambivalent, the authors conclude that in such processes of “new governance” the economic and political roles of the firm need not contradict each other but can follow the same win-win logic of individual self-perfection through cooperative social interactions. (shrink)

ABSTRACTThis article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

This article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

Recent structural innovations in global commerce present difficult challenges for legacy understandings of responsibility. The rise of outsourcing, sub-contracting, and mobile app-based platforms have dramatically restructured relationships between and among economic actors. Though not entirely new, the remarkable rise in the prevalence of these “not-quite-arm’s-length” relationships present difficulties for conceptions of responsibility based on interrogating the past for specifiable actions by blameworthy actors. Iris Marion Young invites investigation of a “social connection model of responsibility” (SCMR) that is, in many ways, (...) better suited to this new commercial reality. Scholars working to understand corporate responsibility have invoked Young’s model to some good effect, though often superficially and uncritically. In this paper, we look closely at Young’s social connection model and its potential for helping us understand corporate responsibility in a radically networked world. (shrink)

ABSTRACT:The transition from modern to postmodern society leads to changing expectations about the purpose and responsibility of leadership. Habermas’s social theory provides a useful analytical tool for understanding current societal transition processes and exploring their implications for the responsibility of business vis-à-vis society. We argue that integrative responsible leadership, in particular, can contribute to the reconciliation of business with societal goals. Integrative responsible leadership understood in a Habermasian way is not only a strategic endeavor but also a communicative endeavor. An (...) essential part of integrative responsible leadership in light of the current societal transformation processes is the facilitation of discourses about a shared base of norms and values. This is exemplified alongside current societal developments like the European migration crisis or the emerging nationalist and fundamentalist movements in some countries. We specify how and when leadership should resort to communicative action and discuss the implications for leadership. (shrink)

The debate about the appropriate standards for upstream corporate social responsibility of multinational corporations has been on the public and academic agenda for some three decades. The debate originally focused narrowly on “contract responsibility” of MNCs for monitoring of upstream contractors for “sweatshop” working conditions violating employee rights. The authors argue that the MNC upstream responsibility debate has shifted qualitatively over time to “full producer responsibility” involving an expansion from “contract responsibility” in three distinct dimensions. First, there is an expansion (...) of scope from working conditions to human rights and social and environmental impacts broadly defined. Second, there is expansion in depth of this broader responsibility to the whole upstream supply chain without regard to contracting status. Upstream responsibility now includes all suppliers, including direct contractors and the chain of suppliers to such contractors. Finally, the change in CSR scope and depth has led to an evolution of CSR management practice. (shrink)

The last years have seen a surge of scandals in financial intermediation. This article argues that the agency structure inherent to most forms of financial intermediation gives rise to conflicts of interest. Though this does not excuse scandalous behavior it points out market imperfections. There are four types of conflicts of interest: personal-individual, personal-organizational, impersonal-individual, and finally, impersonal-organizational conflicts. Analyzing recent scandals we find that all four types of conflicts of interest prevail in financial intermediation.

This article argues that effective corporate social responsibility (CSR) of multinational pharmaceutical companies in developing countries should reflect context, opportunity, proximity, time and impact in accordance with the social integration and ethical approaches to CSR. It proposes a CSR model expressed as CSR=COPTI+SI+E, which acknowledges access-to-medicines as a matter in the global public domain, a public choice problem and a moral responsibility issue for multinational pharmaceutical companies. This model recognises the globalisation of the principle of humanity in communities of place (...) and communities of interest as highlighted by the Global Economic Ethic Manifesto 2009 as an integral part of the responsibilities of multinational pharmaceutical companies. The model reflects a global application of the concept of disadvantaged consumer already known to some national laws. The article suggests an access-to-medicines CSR framework for pharmaceutical companies which may include pricing, patents, testing and clinical trials, research and development, joint public private initiative and appropriate use of drugs. (shrink)

ABSTRACT:This study examines whether the empirical evidence on the relationship between corporate social performance (CSP) and corporate financial performance (CFP) differs depending on the publication outlet in which that evidence appears. This moderator meta-analysis, based on a total sample size of 33,878 observations, suggests that published CSP-CFP findings have been shaped by differences in institutional logics in different subdisciplines of organization studies. In economics, finance, and accounting journals, the average correlations were only about half the magnitude of the findings published (...) in Social Issues in Management, Business Ethics, or Business and Society journals (mean corrected correlation coefficientof.22 vs..49, respectively). Specifically, economists did not find null or negative CSP-CFP correlations, and average findings published in general management outlets (=.41) were closer to Social Issues in Management, Business Ethics, and Business and Society results than to findings reported in economics, finance, and accounting journals. (shrink)

The notion of extant social contracts (ESC), which was the original contribution that Tom Dunfee provided to contractualist business ethics (CBE) and Integrated Social Contracts Theory (ISCT) more specifically, has commanded less research attention to date than one would expect based on its apparent empirical face validity and its disciplinary spanning potential. This article attempts to revive the ESC concept in both normative and positive research at the intersection of business, management, and ethics and law. After identifying three features that (...) positively distinguish ESC from ISCT, this article argues that the yet unrealized conceptual potential of ESC is most likely to be cashed out when it is applied to the field of private international business regulation and when it is conceptually connected to the legitimizing perspective of institutional theory. (shrink)

An interdisciplinary theoretical framework is proposed for analysing justice in global working conditions. In addition to gender and race as popular criteria to identify disadvantaged groups in organizations, in multinational corporations (MNCs) local employees (i.e. host country nationals (HCNs) working in foreign subsidiaries) deserve special attention. Their working conditions are often substantially worse than those of expatriates (i.e. parent country nationals temporarily assigned to a foreign subsidiary). Although a number of reasons have been put forward to justify such inequalities—usually with (...) efficiency goals in mind—recent studies have used equity theory to question the extent to which they are perceived as fair by HCNs. However, since perceptual equity theory has limitations, this study develops an alternative and non-perceptual framework for analysing such inequalities. Employment discrimination theory and elements of Rawls’s ‘Theory of Justice’ are the theoretical pillars of this framework. This article discusses the advantages of this approach for MNCs and identifies some expatriation practices that are fair according to our non-perceptual justice standards, whilst also reasonably (if not highly) efficient. (shrink)

This article addresses the recent call in business ethics literature for a better understanding of corporations as political actors or entities. It first gives an overview of recent attempts to examine classical issues in business ethics through a political lens. It examines different ways in which theorists with an interest in the normative analysis of business practices and institutions could find it desirable and fruitful to use a political lens. This article presents a distinction among four views of the relations (...) between corporations and politics: corporations as distributive agents, corporations as political communities, corporate practices and policies as citizenship issues, and corporations as active participants in the political process. This article finishes with an examination of three challenges that need to be overcome by the theory of the firm as a political actor. (shrink)

Theories of business ethics or corporate responsibility tend to focus on justifying obligations that go above and beyond what is required by law. This article examines the curious fact that most business ethics scholars use concepts, principles, and normative methods for identifying and justifying these beyond-compliance obligations that are very different from the ones that are used to set the levels of regulations themselves. Its modest proposal—a plea for a research agenda, really—is that we could reduce this normative asymmetry by (...) borrowing from the normative framework of “regulation” to identify and justify an important range of beyond-compliance obligations. In short, we might think of “self-regulation” as a language and a normative framework with some distinct advantages over other frameworks like stakeholder theory, corporate social responsibility, corporate citizenship, and the like. These other frameworks have been under attack in the business ethics literature of late, primarily for their vagueness and their disappointing inability to distinguish clearly between genuine beyond-compliance moral obligations, on the one hand, and charitable acts that are laudable but not morally obligatory, on the other. (shrink)

To achieve effective stakeholder governance in the context of international social accountability certification requires constructing a network of agreement. In a case study of a small-to-medium-sized enterprise, we examine managers’ attempts at enrolling participants in the supply chain to investigate how they strive to engage these stakeholders. We adopt actor-network theory and sensemaking theory to develop a novel approach to understanding social accountability standards’ certification in stakeholder networks. We argue that the design and operation of any SA standard across a (...) network requires not only attempts at enrolling other participants in the supply chain but management contextualizing and problematizing the terms of their involvement. (shrink)

This article begins with a detailed analysis of how the choice situation of a social contract for international business ethics can be constructed and justified. A choice situation is developed by analyzing conceptions of the multinational firm and the domain of international business. The result is a hypothetical negotiation between two fictional characters, J. Duncan Grey and Elizabeth Redd, who respectively represent the interests of businesses and communities seeking to engage in international trade. The negotiators agree on ethical principles governing (...) wages, the environment, and compliance social and cultural norms. These principles are then shown to rest in wide reflective equilibrium with considered moral judgments on international business ethics, which are drawn from international agreements, such as the UN Declaration on Human Rights, and voluntary business initiatives, such as the Global Sullivan Principles and the UN Global Compact. (shrink)

In an era when the public and shareholders increasingly demand greater accountability from institutions for racial injustice and slavery, scholarship on corporate reparations is more and more essential. This article argues that corporations have played a significant role in the cultural dehumanization of Blackness and therefore have a particular responsibility to make repair. Cultural dehumanization refers to embedding anti-Blackness into US culture in service of capitalist profit accumulation, which has resulted in status and material inequalities between Blacks and whites that (...) have persisted from slavery to the present. More specifically, the article argues corporations have a moral duty to offer reparations to Black Americans regardless of any redress offered by other perpetrators of anti-Blackness. It appeals to tort law in providing a moral justification for corporate reparations to Black Americans. (shrink)

In the following article, we propose an analytical framework for the analysis of Corporate Social Responsibility (CSR) Standards based on the paradigmatic nexus of voice and entitlement. We follow the theory of decentration and present the concept of Transnational Norm-Building Networks (TNNs), which — as we argue — comprise a new nexus of voice and entitlement beyond the nation—state level. Furthermore, we apply the analytical framework to the ISO 26000 initiative and the Global Compact. We conclude the article with remarks (...) on the legitimacy and the effectiveness of norms generated by TNNs. Through this, we aim to contribute a new theoretical foundation to the analysis of CSR standards, which enables us to undertake a more differentiated description of TNN structures which have hitherto been ignored in academic literature. Secondly, we will contribute to the practical debate on ISO 26000 and the Global Compact by proposing new perspectives on the conditions of their legitimacy and effectiveness based on the voice-entitlement nexus. (shrink)

Voluntary sustainability standards that establish global rules for firms’ environmental and/or social conduct and allow for verification of firm compliance via third-party certification hold the promise to govern firms’ sustainability conduct in a globalizing world economy. However, the recent proliferation of competing and overlapping global sustainability standards that have been developed by various stakeholders with different agendas, creates uncertainties for firms that likely reduce their propensity to adopt any standard. Without widespread adoption these standards cannot effectively govern firm conduct and (...) in contrast create barriers for firms’ access to export markets. We suggest that the uncertainties associated with competing standards and the effect of these uncertainties on standard certification decisions are especially large for firms in emerging economies because these firms lack access to information about current and future standards and the resources to obtain certifications to multiple standards. We theoretically propose and empirically identify three distinct sources of sustainability standard uncertainty: diversity of customer requirements, dynamism of customer requirements, and the unpredictability of the future evolution of standard and propose that each of these sources reduces firms’ propensity to obtain certification to any standard. Our empirical results based on certifications to food safety standards by a sample of 97 Mexican food exporting firms confirm that three distinct sources of sustainability standard uncertainty exist and that all of them negatively impact certification. We discuss ethical implications and offer recommendations for both suppliers as well as standard setting organizations. (shrink)

The dominant framing of the political corporate social responsibility discussion challenges the traditional economic conception of the firm and aims to produce a paradigm shift in CSR studies wherein the traditional, apolitical view of corporations’ roles in society is replaced by the political conception of CSR. In this paper, we show how the major framing of the political CSR discussion calls for a redirection to take international hard legal and moral regulations, as well as the need for the boundaries between (...) business and politics into account. (shrink)

The dominant understanding of political corporate social responsibility suggests new, broader political roles for businesses in the globalized economy, challenging the classical liberal social order. In this paper, we show how the major framing of the political CSR discussion not only challenges the classical liberal social order but also goes against the more general political economic perspective of the regulated market economy. We argue that this latter tendency of the political CSR discussion is its main weakness. We introduce a Rawlsian (...) reframing of political CSR that is in line with the idea of a global-regulated market economy and compatible with some of the basic global ethical aims of the political CSR movement. (shrink)

ABSTRACT:Within corporate social responsibility (CSR), the exploration of the political role of firms (political CSR) has recently experienced a revival. We review three key periods of political CSR literature—classic, instrumental, and new political CSR—and use the Rawlsian conceptualization of division of moral labor within political systems to describe each period’s background political theories. The three main arguments of the paper are as follows. First, classic CSR literature was more pluralistic in terms of background political theories than many later texts. Second, (...) instrumental CSR adopted classical liberalism and libertarian laissez-faire as its structural logic. Third, new political CSR, based on a strong globalist transition of responsibilities and tasks from governments to companies, lacks a conceptualization of division of moral labor that is needed to fully depart from a classical liberalist position. We end by providing a set of recommendations to develop pluralism in political CSR. (shrink)

ABSTRACT:A fundamental question of global business ethics is, “When moral business conduct standards conflict across borders, whose standards should prevail?” Western scholarship and practice tends to depict home country standards as “higher” or more “restrictive” or “well-ordered” than the “lower” standards of emerging market actors. As much as the question appears culturally neutral, many who ask it do so with a culturally-specific lens shaped by prevailing conditions of Western economic strength. However, the dominant economic powers of the future are not (...) likely to be the same North American and Western European markets that have reigned supreme in the recent past. As corporations increasingly re-examine their political roles in global governance, we need also to re-examine the moral authority of global ethical norms so they do not merely reflect the dominant ideologies of the most economically powerful market actors. (shrink)

In a globalizing world, governments are not always able or willing to regulate the social and environmental externalities of global business activities. Multi-stakeholder initiatives (MSI), defined as global institutions involving mainly corporations and civil society organizations, are one type of regulatory mechanism that tries to fill this gap by issuing soft law regulation. This conceptual paper examines the conditions of a legitimate transfer of regulatory power from traditional democratic nation-state processes to private regulatory schemes, such as MSIs. Democratic legitimacy is (...) typically concerned with input legitimacy (rule credibility, or the extent to which the regulations are perceived as justified) and output legitimacy (rule effectiveness, or the extent to which the rules effectively solve the issues). In this study, we identify MSI input legitimacy criteria (inclusion, procedural fairness, consensual orientation, and transparency) and those of MSI output legitimacy (rule coverage, efficacy, and enforcement), and discuss their implications for MSI democratic legitimacy. (shrink)

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations in (...) the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners. (shrink)

ABSTRACTMany academic authors, policy makers, NGOs, and corporations have focused on top-down human rights global norm-making, such as the United Nations Guiding Principles for Business and Human Rights. What is often missing are contextual and substantive analyses that interrogate rights mobilization and linkages between voluntary transnational rules and domestic governance. Deploying a socio-legal approach and using a combination of longitudinal field and archival data, this article investigates how a local, indigenous community in Northern Chile mobilized their rights over a period (...) of almost two decades. We found that rights mobilization was largely shaped by tensions between the different logics of legality and the business organization. In our case, the UNGP implementation process has been ineffective in giving rightsholders access to genuine remedy. On the contrary, it has led to weakened rights mobilization, dividing the local community. We conclude that greater attention to rights mobilization and domestic governance dynamics should be given in the business and human rights debate. (shrink)

In light of recent attempts to determine the political role and status of corporations I discuss the normative implications of considering multinational corporations (MNCs) as political actors. I posit that corporations do indeed have a new political role in a connected world, in particular with respect to matters of human rights, social and environmental justice. We thus find a growing need for ethical and political knowledge to inform and guide the emerging political co-responsibility of MNCs. I draw on the rich (...) literature in cosmopolitanism to seek such guidance and discuss some of the implications that a cosmopolitan perspective implies. (shrink)

The provision of responsible labor standards along the entire value chain poses considerable challenges for corporations. In particular, management shortcomings and institutional deficits—which are partly related to cultural issues—frequently impede the realization of responsible business practices in emerging and developing countries. It is widely established in theory that industry self-regulation constitutes a particularly promising approach for overcoming these challenges. Nonetheless, it is still an open question as to whether industry initiatives effectively promote responsible standards in practice. This contribution aims to (...) enrich the current discussion about the power of industry self-regulation to ensure responsible labor standards in factories in emerging and developing countries. For this purpose, we analyze the ICTI CARE Process, the self-regulation initiative of the international toy industry, that aims to promote responsible business practices in Chinese toy factories. The assessment of the ICP shows that corporations’ buying behavior is decisive in order for industry self-regulation to become an appropriate means of improving labor standards. Based on the insights from the study and from theoretical reasoning, we develop a framework for effective industry self-regulation that integrates the perspective of factories. (shrink)

Most empirical studies of corporate social responsibility (CSR) focus on variables at the company level. In this article, I focus on the sector level: I consider features of the international clothing business and of the global economy in general, that may influence the CSR potential. There is high ‘CSR potential’ when sector-specific features indicate that the risk of violating CSR standards is high. Thus, ‘high CSR potential’ indicates that there is a potential for positive influence through CSR-related actions. Based on (...) several empirical studies of the clothing business, I identify six features that indicate a high CSR potential. These features are shown to be consistent with more general features of the global economy. This holds whether we emphasize asymmetric relations and unequal distribution, the product cycle, or transnationalization. Thus, the CSR potential of the international clothing business seems not only to be a product of sector-specific properties, but also of more systemic and general features of the global economy. This suggests that the CSR performance of individual companies may enhance their social and environmental impact, but will probably have little effect on the features that determine the CSR potential. In order to affect these features I argue, we rely on other institutions to act – mainly governments. Finally, I conclude that this study shows that it is useful to identify the CSR potential of a business sector. We get a picture of which part of the international CSR standards companies run the greatest risk of violating and of which structural issues intergovernmental actions should address to reduce the potential for violating CSR standards. (shrink)

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

Calls for greater corporate responsibility have resulted in the creation of various extralegal mechanisms to shape corporate behavior. The number and popularity of corporate responsibility standards has grown tremendously in the last three decades. Current estimates suggest there may be over 300 standards that address various aspects of corporate behavior and responsibility (e. g., working conditions, human rights, protection of the natural environment, transparency, bribery). However, little is known about how these standards relate directly to the notion of peace through (...) commerce and the reduction of violent conflict in the world. This article explores the relationship between corporate responsibility standards and peace through commerce. After a summary of the current state of standards with respect to the creation of peace and the reduction of violent conflict, I explore concerns regarding the effectiveness of standards in shaping corporate behavior and the potential future role standards could have in creating peace through commerce. (shrink)

In this article, we examine the empirical association between corporate governance (CG) and corporate social responsibility (CSR) engagement by investigating their causal effects. Employing a large and extensive US sample, we first find that while the lag of CSR does not affect CG variables, the lag of CG variables positively affects firms’ CSR engagement, after controlling for various firm characteristics. In addition, to examine the relative importance of stakeholder theory and agency theory regarding the associations among CSR, CG, and corporate (...) financial performance (CFP), we also examine the relation between CSR and CFP. After correcting for endogeneity bias, our results show that CSR engagement positively influences CFP, supporting the conflict-resolution hypothesis based on stakeholder theory, but not the CSR overinvestment argument based on agency theory. Furthermore, firms’ CSR engagement with the community, environment, diversity, and employees plays a significantly positive role in enhancing CFP. (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.

This article examines the empirical association between analyst coverage and corporate social responsibility (CSR) by investigating their simultaneous and causal effects, and its joint effects of CSR engagement and analyst coverage on firm risk. We find a positive association between the level and change of CSR engagement and the level and change of analyst coverage after considering simultaneity and causality. Based on the first-difference approach, we further find that the change in analyst following from the previous year affects the change (...) in CSR in the current period, whereas the change in CSR from the previous period does not influence the change in analyst following in the current period. Furthermore, we find that the change in CSR engagement as well as the interaction effect of changes in CSR and analyst coverage reduces the change of firm risk. When we examine the CSR strengths and concerns separately, analyst following does not significantly influence firms’ CSR strength but CSR concern activities decreases significantly as firms have more analyst followings. We further find the mediating role of financial analysts between CSR concerns (but not CSR strengths) and firm risk. We maintain that analysts provide indirect but additional social pressure to the firms to eventually reduce their irresponsible activities. Taken together, we interpret these results to support the stakeholder theory-based conflict-resolution explanation that considers CSR engagement as a vehicle to reduce conflicts of interest between managers and noninvesting stakeholders but not the overinvestment hypothesis that views CSR as a waste of valuable resources at the cost of shareholders. (shrink)

Our goals in this article are to summarize the existing literature on the role business can play in creating sustainable peace and to discuss important avenues for extending this research. As part of our discussion, we review the ethical arguments and related research made to date, including the rationale and motivation for businesses to engage in conflict resolution and peace building, and discuss how scholars are extending research in this area. We also focus on specific ways companies can actively engage (...) in conflict reduction including promoting economic development, the rule of law, and principles of external valuation, contributing to a sense of community, and engaging in track-two diplomacy and conflict sensitive practices. We conclude by developing a set of future research questions and considerations. (shrink)

In the current literature, institutional adoption of Corporate Social Responsibility (CSR) governance standards is mainly understood in a binary sense (adoption versus no adoption), and existing research has hitherto focused on inducements as well as on barriers of related organizational change. However, little is known about often invisible internal adoption patterns relating to institutional entrepreneurship in the field of CSR. At the same time, additional information about these processes is relevant in order to systematically assess the outcomes of institutional entrepreneurship (...) and to differentiate between substantive versus symbolic implementation. In this paper, we contribute a comparative intraorganizational differentiation of institutional adoption processes in the field of CSR, and we distinguish between broad and narrow organizational institutional adoption across different management functions relating to institutions of a similar type. Our study is based on a quantitative survey among members of the United Nations Global Compact Network Germany, as well as on qualitative interviews. We analyze different institutional adoption patterns and derive ten theoretical predictors of diverse institutional adoption choices and thereby inform the literatures on institutional entrepreneurship, CSR governance, and Multi-Stakeholder Initiatives. Besides our theoretical contributions, our findings serve as a source of information for practitioners engaged in CSR governance as they provide new insights into the managerial perception and assessment of different CSR standards and initiatives. (shrink)

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the modern perspective (...) that views CSR as instrumental for business success. Capitalizing on the two‐dimensional CSR model developed by Quazi and O’Brien, Journal of Business Ethics, 25, 33–51 (2000), this article attempts to gauge managerial perspectives toward CSR in Lebanon. An empirical study of 119 Lebanese managers reveals that the majority of respondents (83 percent) are favorably inclined toward CSR with about 20 percent adhering to the modern paradigm, more than 50 percent adhering to a philanthropic view and 18 percent fitting into the classical camp. The findings are discussed and cross‐cultural implications drawn accordingly. (shrink)

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet, in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the modern perspective (...) that views CSR as instrumental for business success. Capitalizing on the two-dimensional CSR model developed by Quazi and O'Brien (Journal of Business Ethics 25, 33-51, 2000), this article assesses managerial perspectives towards CSR in three neighboring Middle Eastern countries (Lebanon, Syria and Jordan) through an empirical study involving 333 managers. The findings lend support to the Quazi and O'Brien model (2000), suggesting some commonalities in CSR orientations as well as minor divergences. The findings are discussed and cross-cultural implications drawn accordingly. (shrink)

According to Palazzo and Scherer, the changing role of business corporations in society requires that we take new measures to integrate these organizations into society-wide processes of democratic governance. We argue that their model of integration has a fundamental problem. Instead of treating business corporations as agents that must be held accountable to the democratic reasoning of affected parties, it treats corporations as agents who can hold others accountable. In our terminology, it treats business corporations as “supervising authorities” rather than (...) “functionaries.” The result is that Palazzo and Scherer’s model does not actually address the democratic deficit that it is meant to solve. In order to fix the problem, we advocate removing business corporations from any policymaking role in political CSR and limiting participation to political NGOs and other groups that meet the standards we set out for a politically representative organization (PRO). (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)

ABSTRACT:Organization theory and business ethics are essentially the positive and normative sides of the very same coin, reflecting on how human cooperative activities are organized and how they ought to be organized respectively. It is therefore unfortunate that—due to the relatively impermeable manmade boundaries segregating the corresponding scholarly communities into separate schools and departments, professional associations, and scientific journals—the potential symbiosis between the two fields has not yet fully materialized. In this essay we make a modest attempt at establishing further (...) connectivity by surveying the terrain covered by the two disciplines jointly, as if the boundaries between them did not matter. We commence by providing a concise overview of the organization theory discipline for interested non-specialists from the field of business ethics. Next, we proceed to point out four research themes commonly investigated by members of both communities, and also a variety of organization-theoretical perspectives on each. In the final part of this essay we explore what organization theory has to offer business ethics, and what the boundaries of that potential contribution are. We warn skeptical readers in advance that the spirit and tone of our essay is most definitely upbeat, as we are convinced that the potential for symbiosis between the two fields is vast and inspiring, even though it has only been unleashed partially and incidentally thus far. (shrink)

In this paper, I analyze the moral responsibili- ties that companies have with regard to the development of their sector, especially when there are path dependences that can lead sectors on more or less morally accept- able paths, e.g., with regard to market access for disad- vantaged groups. The interdependencies between companies in a sector are underexplored in the literature on corporate social responsibility (CSR). Reflections on the normative status of profit-seeking and on the normative bases of CSR, however, provide (...) us with reasons for seeing sector-related responsibilities as an important component of CSR. Based on a case study of a financial institution, I analyze various morally relevant ways in which the strategic decisions of companies relate to those of other companies in their sector. I argue that companies have a co-responsibility to contribute to the development of the moral dimensions of their sectors, especially when they deal with vulnerable customers. (shrink)

This article develops an integrative perspective on corporate responsibility by synthesising competing perspectives on the responsibility of the corporation at the organisational and societal levels of analysis. We review three major corporate responsibility perspectives, which we refer to as economic, critical, and politico-ethical. We analyse the major potential uses and pitfalls of the perspectives, and integrate the debate on these two levels. Our synthesis concludes that when a society has a robust division of moral labour in place, the responsibility of (...) a corporation may be economic without jeopardising democracy and sustainability. Moreover, the economic role of corporations neither signifies the absence of deliberative democratic mechanisms nor business practices extending beyond compliance. The study underscores the value of integrating different perspectives and multiple levels of analysis to present comprehensive descriptions and prescriptions of the responsibility phenomenon. (shrink)