ABSTRACT:This article examines the presuppositions and theoretical frameworks of the “new-wave” “Post-Westphalian” approach to international business ethics and compares it to the more philosophically oriented moral theory approach that has predominated in the field. I contrast one author’s Post-Westphalian political approach to the human rights responsibilities of transnational corporations (TNCs) with my own “Fair Share” theory of moral responsibility for human rights. I suggest how the debate about the meaning of corporate human rights “complicity” might be informed by the fair (...) share theory. While I point out that Post-Westphalians and moral philosophers may have fundamental disagreements about basic concepts such as legitimacy, justice, and democratic deliberation, I conclude that the Post-Westphalians have made a major contribution to the expansion of the field by presenting business ethicists with an opportunity to inform and guide debates about the potential future course of transnational governance. (shrink)

ABSTRACT:Although a research focus on the increasing involvement of corporations in shaping and maintaining the global rules of the game points out promising avenues for future research, it simultaneously makes clear how little currently established, mostly managerial conceptual frameworks have to offer in making sense of these developments. It is argued that we need to expand the rather restricted perspectives that these frameworks provide, in order to explore new conceptual foundations that will not only enable us to travel the confines (...) of the different disciplines involved with the study of the changing role of business in shaping the global rules of the game, but that can also systematically connect normative and positive research questions at the conceptual level. Three directions for this search for new foundations are briefly explored. (shrink)

The article is guided by two main research questions: First, do the Equator Principles (EPs), a voluntary CSR-initiative in the project finance sector, and the recently published working paper of the Thun Group of Banks adequately address the U.N. Guiding Principles on Business and Human Rights or do they fall behind the ‘Ruggie framework’? Second, is the demand for human rights due diligence sufficient to classify the EPs as a positive and leverage-based concept of CSR (à la Wettstein and Wood) (...) or is this requirement still a feature of a negative and impact-based concept of CSR? In case it is a negative and impact-based concept of CSR, the question comes up which further steps should be taken by financial institutions to fulfill their positive and leverage-based responsibilities. The article argues that positive and leverage-based responsibilities for multinational companies exist – due to the moral nature of human rights and due to the political authority of multinational companies – and that the current (Ruggie-like) requirements for human rights due diligence are not adequate for a positive and leverage-based concept of CSR. Further measures should be taken by multinational companies – and especially (Equator) banks which possess a high leverage-influence over their clients – to not only ensure the respect for human rights, but also the on-the-ground protection and realization of human rights. (shrink)

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, endorsements, and (...) codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. (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)

Critical scholarship often presents corporate social responsibility (CSR) as a reflection or embodiment of neoliberalism. Against this sort of sweeping political characterization we argue that CSR can indeed be considered a liberal concept but that it embodies a “varieties of liberalism.” Building theoretically on the work of Michael Freeden on liberal languages, John Ruggie and Karl Polanyi on embedded forms of liberalism, and Michel Foucault on the distinction between classical liberalism and neoliberalism, we provide a conceptual treatment and mapping of (...) the ideological positions that constitute the bulk of modern scholarly CSR debate. Thus, we distinguish between embedded liberalism, classical liberalism, neoliberalism, and re-embedded liberalism. We develop these four orientations in turn and show how they are engaged in “battles of ideas” over the meaning and scope of corporate responsibilities—and how they all remain relevant for an understanding of contemporary debates and developments in the field of CSR and corporate sustainability. (shrink)

Building on literature in political CSR and corporate political activity (CPA) as well as responsible innovation and responsible lobbying, we introduce a framework to assess the legitimacy status of corporate political activity. We focus on the fact that companies frequently face sharp regulatory backlash after penetrating markets with their innovations. In response to regulatory backlash, big tech companies often employ an arsenal of corporate political activities to (re-)shape national and local regulatory environments, which raises the important questions about the legitimacy (...) of CPA tactics that we address. To develop and apply this framework, we briefly survey and then assess Uber’s corporate political activities in its 2015 New York City political campaign. (shrink)

ABSTRACTThis article studies multi-stakeholder initiatives as spaces for both deliberation and contestation between constituencies with competing discourses and disputed values, beliefs, and preferences. We review different theoretical perspectives on MSIs, which see them mainly as spaces to find solutions to market problems, as spaces of conflict and bargaining, or as spaces of consensus. In contrast, we build on a contestatory deliberative perspective, which gives equal value to both contestation and consensus. We identify four types of internal contestation which can be (...) present in MSIs—procedural, inclusiveness, epistemic, and ultimate-goal—and argue that embracing contestation and engaging in ongoing revision of provisional agreements, criteria, and goals can enhance the democratic quality of MSIs. Finally, we explore the implications of this perspective for theorizing about the democratic quality in MSIs and about the role of corporations in transnational governance. (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.

Key accomplishments of political corporate social responsibility scholarship have been the identification of global governance gaps and a proposal how to tackle them. Political CSR scholarship assumes that the traditional roles of state and business have eroded, with states losing power and business gaining power in a globalized world. Consequently, the future of CSR lies in political CSR with new global governance forms which are organized by mainly non-state actors. The objective of the paper is to deepen our understanding of (...) political CSR and reintegrate notions of state power into political CSR scholarship by highlighting how states set the context within which business takes place, regulate offshore business practices, and play pivotal roles in new global governance mechanisms. (shrink)

Corporate social responsibility has generally been recognized as corporate pro-social behavior aimed at remediating social issues external to organizations, while political CSR has acknowledged the political nature of such activity beyond social aims. Despite the growth of this literature, there is still little attention given to gender as the starting point for a conversation on CSR, ethics, and the Global South. Deploying critical insights from feminist work in postcolonial traditions, I outline how MNCs replicate gendered neocolonialist discourses and perpetuate exploitative (...) material dependences between Global North/south through CSR activities. Specifically, I address issues of neocolonial relations, subaltern agency, and ethics in the context of gendered global division of labor through the exemplar of Rana Plaza and its aftermath. In all, I offer new directions for CSR scholarship by attending to the intersections of gender, ethics, and responsibility as they relate to corporate actions in the Global South. (shrink)

ABSTRACT:Despite 40 years of equal opportunities policies and more than two decades of government and organization initiatives aimed at helping women reach the upper echelons of the corporate world, women are seriously underrepresented on corporate boards. Recently, fifteen countries sought to redress this imbalance by introducing gender quotas for board representation. The introduction of board gender quota legislation creates ethical tensions and dilemmas which we categorize in terms of motivations, legitimacy, and outcomes. We investigate these tensions through four overarching theoretical (...) perspectives: institutional, stakeholder, social identity, and social capital. We outline a future research agenda based on how these tensions offer greater focus to research on quotas and more broadly to ethics and diversity in organizations in terms of theory, anticipated ethical tensions, data, and methodology. In sum, our review seeks to synthesize existing multidisciplinary research and stimulate future enquiry on this expanding set of legislation. (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)

For more than three decades, business ethics has suggested and evaluated strategies for multinationals to address abject deprivations and weak regulatory institutions in developing countries. Critical appraisals, internal and external, have observed these concerns being severely constrained by the overwhelming prioritization of economic values, i.e., economism. Recent contributions to business ethics stress a re-imagination of the field wherein economic goals are downgraded and more attention given to redistribution of wealth and well-being of the weaker individuals and groups. Development ethics, a (...) lesser known field of normative enquiry, already offers nuanced justifications against economism which business ethicists can use in their current attempts to wean the field from old habits. (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)

The corporate citizenship (CC) concept introduced by Dirk Matten and Andrew Crane has been well received. To this date, however, empirical studies based on this concept are lacking. In this article, we flesh out and operationalize the CC concept and develop an assessment tool for CC. Our tool focuses on the organizational level and assesses the embeddedness of CC in organizational structures and procedures. To illustrate the applicability of the tool, we assess five Swiss companies (ABB, Credit Suisse, Nestlé, Novartis, (...) and UBS). These five companies are participants of the UN Global Compact (UNGC), currently the largest collaborative strategic policy initiative for business in the world (www.unglobalcompact.org). This study makes four main contributions: (1) it enriches and operationalizes Matten and Crane’s CC definition to build a concept of CC that can be operationalized, (2) it develops an analytical tool to assess the organizational embeddedness of CC, (3) it generates empirical insights into how five multinational corporations have approached CC, and (4) it presents assessment results that provide indications how global governance initiatives like the UNGC can support the implementation of CC. (shrink)

The paper advances the conceptual understanding of responsible leadership and develops an empirical scale of discursive responsible leadership. The concept of responsible leadership presented here 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. Ideal responsible leadership conduct thereby goes beyond the dyadic leader–follower interaction to include all stakeholders. The paper offers a definition and operationalization of responsible leadership. The studies that have been conducted to (...) develop the discursive responsible leadership scale validated the scale, discriminated it from other leadership scales, and demonstrated its utility in affecting unethical behavior and job satisfaction in organizations. Responsible leadership is shown to be first, dependent on the hierarchical level in an organization; second, capable of reducing unethical treatment of employees; and finally, a means of enhancing the job satisfaction of employees. The paper concludes with study limitations, future research directions and practical implications. (shrink)

The increasing centrality of business firms in contemporary societies calls for a renewed attention to the democratization of these actors. This paper sheds new light on the possibility of democratizing business firms by bridging recent scholarship in two fields—deliberative democracy and business ethics. To date, deliberative democracy has largely neglected the role of business firms in democratic societies. While business ethics scholarship has given more attention to these issues, it has overlooked the possibility of deliberation within firms. As argued in (...) the paper, a combination of reforms based on the ideas of workplace deliberation and business deliberation is necessary in order to promote the prospect of deliberation in different business contexts. The paper also discusses the importance of more democratic firms for deliberative democracy at large and, in particular, for the recent debate on deliberative systems. Finally, the paper suggests new areas of investigation to better understand the prospect of democratic deliberation in business firms. (shrink)

ABSTRACT:Increasingly, global businesses are confronted with the question of complicity in human rights violations committed by abusive host governments. This contribution specifically looks at silent complicity and the way it challenges conventional interpretations of corporate responsibility. Silent complicity implies that corporations have moral obligations that reach beyond the negative realm of doing no harm. Essentially, it implies that corporations have a moral responsibility to help protect human rights by putting pressure on perpetrating host governments involved in human rights abuses. This (...) is a controversial claim, which this contribution proposes to analyze with a view to understanding and determining the underlying conditions that need to be met in order for moral agents to be said to have such responsibilities in the category of the duty to protect human rights. (shrink)

ABSTRACT:I here advance a critical research agenda for the political perspective of corporate social responsibility (Political CSR). I argue that whilst the ‘Political’ CSR literature is notable for both its conceptual novelty and practical importance, its development has been hamstrung by four ambiguities, conflations and/or oversights. More positively, I argue that ‘Political’ CSR should be conceived as one potentialformof globalization, and not as aconsequenceof ‘globalization’; that contemporary Western MNCs should be presumed to engage in CSR for instrumental reasons; that ‘Political’ (...) CSR should be associated with a corresponding ‘political’ model of corporate governance; and that both a ‘Rawlsian’ and ‘Habermasian’ perspective of Political CSR are different from ‘Political’ CSR. In concluding, I use these four critiques to identify a number of areas within which increasingly robust and sophisticated positive and normative theories of Political CSR are required. (shrink)

This paper takes a critical perspective on corporate social responsibility and examines the ways in which an industry organization discursively manages the relationship between the industry and its stakeholders in a situation where the legitimacy of the industry is called into question. Drawing on the literature on organizational narcissism and sensemaking the paper develops the construct of narcissistic CSR orientation and empirically elaborates on three defensive rhetorical strategies through which the organization makes sense of the accountability and responsibility of the (...) industry for the negative societal effects of their business. The paper advances knowledge in the field of critical CSR by proposing a new framework for critically examining organization-stakeholder relationships and organizational responses to stakeholder demands in contexts where the interests of organizations are in conflict with the public good. (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)

This article investigates corporate social responsibility (CSR) as an institution within UK multi-national corporations (MNCs). In the context of the literature on the institutionalization of CSR and on critical CSR, it presents two main findings. First, it contributes to the CSR mainstream literature by confirming that CSR has not only become institutionalized in society but that a form of this institution is also present within MNCs. Secondly, it contributes to the critical CSR literature by suggesting that unlike broader notions of (...) CSR shared between multiple stakeholders, MNCs practise a form of CSR that undermines the broader stakeholder concept. By increasingly focusing on strategic forms of CSR activity, MNCs are moving away from a societal understanding of CSR that focuses on redressing the impacts of their operations through stakeholder concerns, back to any activity that supports traditional business imperatives. The implications of this shift are considered using institutional theory to evaluate macro-institutional pressures for CSR activity and the agency of powerful incumbents in the contested field of CSR. (shrink)

ABSTRACT:Although there is ample evidence that stock markets react negatively to unethical corporate behavior, our understanding of the mechanisms that shape variation in these reactions across different incidents of misconduct remains underdeveloped. We propose and test a framework for explaining this variation by focusing on the role of the media in disseminating initial information about misconduct. We argue that the signaling effects of this information are important for investors because corporations have strong incentives to limit the information they disclose about (...) misconduct. More specifically, we hypothesize that investors are more likely to react negatively when the media presents clear and credible information that misconduct occurred, that the firm was responsible for it, and that the misconduct was the result of deeper organizational problems. We also predict that information which signals that a firm has restorative capacity tempers investor reactions when the media places blame for misconduct on the corporation rather than specific individuals. We test our hypotheses in a unique sample of 345 acts of corporate misconduct in five European countries. Our findings provide broad support for our hypotheses, and we discuss implications for research on corporate misconduct and the role of non-state actors in regulating unethical corporate behavior. (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)

This study complements previous empirical research on the business case for corporate social responsibility (CSR) by employing hitherto unused data on corporate social performance (CSP) and proposing statistical analyses to account for bi-directional causality between social and financial performance. By allowing for differences in the importance of single components of CSP between industries, the data in this study overcome certain limitations of the databases used in earlier studies. The econometrics employed offer a rigorous way of addressing the problem of endogeneity (...) due to simultaneous causality. Although the study’s results provide no evidence that there is a generic or universal business case for CSR, they indicate that there is a strong link between single stakeholder-related issues of CSR and financial performance. However, the analysis does not establish causality within these relationships. (shrink)

Human rights declarations are instruments used to introduce universal standards of ethics. The UN’s Protect, Respect, and Remedy Framework (Ruggie, Protect, respect, and remedy: A Framework for business and human rights. UN Doc A/HRC/8/5, 2008; Guiding principles on business and human rights: Implementing the United Nations “Protect, Respect, and Remedy” framework. UN Doc A/HRC/17/31, 2011) intends to provide guidance for corporate behavior in regard to human rights. This article applies concepts from the field of organizational justice to the arena of (...) business and human rights for the purpose of operationalizing the UN Framework. This approach facilitates the recognition of gaps between perceptions of justice held by stakeholders versus businesses and/or the State. Such recognition raises the potential for addressing issues that lead to divergent perceptions of justice, thus potentially improving the human rights performance of businesses. The research also shows the potential for complicity of businesses in human rights abuses and exposes a fundamental weakness in the UN Framework, which attempts to draw a sharp distinction between duties of States versus responsibilities of business. We illustrate this approach through analysis of the case of Goldcorp’s Marlin Mine in Guatemala; an extractive industry project that affects indigenous communities. (shrink)

Managers in Peru, South Africa, and the United States were classified into four groups along Singhapakdi et al. (J Bus Ethics 15:1131–1140, 1996) Perceived Role of Ethics and Social Responsibility (PRESOR) scale. In Peru and the United States, individuals in the ethics and social responsibility first category reported greater satisfaction with organizational performance than did those in the profits first category. Moral capitalists—individuals who report high emphases on both social responsibility and profits—reported the highest satisfaction with performance in the United (...) States. Managers in the United States are more likely than their counterparts in Peru and South Africa to reject the mutual exclusivity of prioritizing social responsibility and profits simultaneously. Directions for future research are outlined. (shrink)

ABSTRACT:Should companies’ human rights responsibilities arise, in part, from their “leverage”—their ability to influence others’ actions through their relationships? Special Representative John Ruggie rejected this proposition in the United Nations Framework for business and human rights. I argue that leverage is a source of responsibility where there is a morally significant connection between the company and a rights-holder or rights-violator, the company is able to make a contribution to ameliorating the situation, it can do so at modest cost, and the (...) threat to human rights is substantial. In such circumstances companies have a responsibility to exercise leverage even though they did nothing to contribute to the situation. Such responsibility is qualified, not categorical; graduated, not binary; context-specific; practicable; consistent with the social role of business; and not merely a negative responsibility to avoid harm but a positive responsibility to do good. (shrink)

ABSTRACT:The literatures of business ethics and international business have generally had little influence on each other. Nevertheless, the decline in the power of nation states, the emergence of non-governmental organizations, the proliferation of self-regulatory bodies, and the changing responsibilities, roles, and structure of multinational corporations make constructive engagement between these two disciplines imperative. This changing institutional landscape creates many areas of common concern. In this article, we describe the changing institutional context of global business and suggest ways in which both (...) business ethics and international business may inform each other more fruitfully. (shrink)

Can platforms close the governance gap in the sharing economy, and if so, how? Through an in-depth qualitative case study, we analyze the process by which new regulation and self-regulation emerge in one sector of the sharing economy, crowdfunding, through the actions of a meta-organization. We focus on the principal French sectoral meta-organization, Financement Participatif France. We show that this multi-stakeholder meta-organization not only closed the governance gap through collective legal, ethical, and utilitarian work but also preceded and shaped the (...) new market. We present a hybrid governance approach combining soft multi-agency regulation, self-regulation through a process of “partial meta-organizing”, and direct civil society participation. We expand the literature by highlighting features of platforms’ partial meta-organizing and by identifying conditions for successful joint regulation and self-regulation of the sector. (shrink)

In the work of Karl Polanyi, the negative effects of a self-regulating market economy are described as being limited by societal forces such as the policies of the welfare state. With the decline of the modern welfare state since the late 1970s, social activities of business firms are increasingly regarded as an important complement to or even as a substitute for welfare state policies by a part of the literature. However, and controversially, another stream of argumentation regards these activities as (...) being aimed at advancing the reach of market forces. To fully grasp the ambiguous nature of the social activities of business, in this paper I provide an account of affirmative as well as of critical interpretations of these activities throughout the history of modern capitalism. On this basis, the power of critique to disentangle the diverse motivations that underlie the social engagement of business is highlighted as a condition for facilitating a role of business in society that balances economic and social considerations. (shrink)

ABSTRACT:Although a research focus on the increasing involvement of corporations in shaping and maintaining the global rules of the game points out promising avenues for future research, it simultaneously makes clear how little currently established, mostly managerial conceptual frameworks have to offer in making sense of these developments. It is argued that we need to expand the rather restricted perspectives that these frameworks provide, in order to explore new conceptual foundations that will not only enable us to travel the confines (...) of the different disciplines involved with the study of the changing role of business in shaping the global rules of the game, but that can also systematically connect normative and positive research questions at the conceptual level. Three directions for this search for new foundations are briefly explored. (shrink)

Can private companies legitimately regulate sharing markets, and if yes, how? Whereas scholars have either criticized sharing platforms for expanding into private and public arenas or welcomed them to counterbalance encroaching government regulations, studies document their unbridled popularity. On the basis of a special version of social contracts theory pioneered by James Buchanan, we develop a heuristics that helps guide reasoning about the legitimacy of the sharing economy’s regulatory function. First, we discuss the conditions under which free and responsible individuals (...) deliberately subject themselves to rules without their prior direct participation, that is, exit, voice, and constitutional limits. Second, we suggest sharing platforms can use novel ordo-responsibilities to establish a sharing constitution that takes these conditions into account. Third, we argue that sharing platforms can legitimately do so within an enabling institutional environment in society, the provision of which relies on the joint efforts of sharing platforms, political actors, and civil society. (shrink)

In this paper, I aim to critically examine a set of assumptions that pervades human resource management and HR practices. I shall argue that they experience a remarkable ethics deficit, explain why this is so, and explore how the UN Global Compact labor principles may help taking ethics seriously in HRM. This paper contributes to the understanding and critical examination of the undisclosed beliefs underlying theory and practice in human resource management and to the examination of how the UN Global (...) Compact’s ideal of “decent work” may offer some promising avenues for the development of ethics in HRM. (shrink)

Recent discussions on corporate citizenship highlight the new political role of corporations in society by arguing that corporations increasingly act as quasi-governmental actors and take on what hitherto had originally been governmental tasks. By examining political and sociological citizenship theories, the authors show that such a corporate engagement can be explained by a changing conception of corporate citizens from corporate bourgeois to corporate citoyen. As an intermediate actor in society, the corporate citoyen assumes co-responsibilities for social and civic affairs and (...) actively collaborates with fellow citizens beyond governmental regulation. This change raises the question of how such corporate civic engagement can be aligned with public policy regulations and how corporate activities can be integrated into the democratic regime. To clarify the mode of CC contributions to society, the authors will apply the tenet of subsidiarity as a governing principle which allows for specifying corporations’ tasks as intermediate actors in society. By referring to the renewed European Union strategy for Corporate Social Responsibility, the authors show how such a subsidiary corporate-governmental task-sharing can be organized. (shrink)

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)

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)

This article extends our understanding of the firm–nongovernmental organization relationship by emphasizing the role of language in shaping organizational behavior. It focuses on discursive and rhetorical activity through which firms and NGOs jointly – and not always consciously – define boundaries for socially acceptable corporate behavior. It explores the discursive legitimation struggles of a leading Finnish forest industry company StoraEnso and Greenpeace during 1985–2001 and examines how these struggles participated in the definition and institutionalization of corporate social responsibility. I find (...) a mixture of rational and moral struggles as a key feature of this legitimation work and show how different manifestations of these struggles act as a central mechanism that redefines what the boundaries of corporate responsibility are in a specific setting at a given point of time. The study illustrates how the actors’ ability to sense the public’s views contribute to rhetorical difficulties of the industry and unintended societal consequences for the activists, and how the rational and moral struggles build up in time to trigger changes in the actors’ sensemaking and actions. (shrink)

ABSTRACT:Do corporations have a duty to promote just institutions? Agreeing with Hsieh’s recent contribution, this article argues that they do. However, contrary to Hsieh, it holds that such a claim cannot be advanced convincingly only by reference to the negative duty to do no harm. Instead, such a duty necessarily must be grounded in positive obligation. In the search of a foundation for a positive duty for corporations to further just institutions, Stephen Kobrin’s notion of “private political authority” offers a (...) promising connecting point. Political authority implies political responsibility; Political obligation, however, includes more than merely not doing any harm—it is essentially positive obligation. The implications of the new political responsibilities of multinational corporations may even go far beyond the particular duty to promote just institutions; they may be symptomatic for a much more profound shift from an individual to a collective age. (shrink)

Corporate social responsibility (CSR) has been recently conceptualized and studied as a political phenomenon. Most debates in this scholarship have thus far focused on normative issues. Less attention has been paid to the explanatory potential of CSR research grounded in political theory and philosophy. In this article, we conduct a pragmatist reading of political scholarship on CSR and seek to deploy existing knowledge for research pursuing political explanation. We argue that the political ontologies that underlie scholarship on CSR can be (...) used to transform normative and descriptive research also for explanatory uses. We show how ontologies vary in terms of potential research objects and scopes of political explanation, and argue that the main types of political-ontological stances adopted in scholarship on CSR, foundational and post-foundational stances, offer explanatory analysis of different schematic guidelines. Our pragmatist reading of previous research and an empirical case illustration of political explanation of change in corporate responsibility in the biofuel industry demonstrate the opportunities, limitations, and challenges different political-ontological commitments provide for political explanation. (shrink)

Under conditions of growing interconnectedness of the global economy, more and more stakeholders are exposed to risks and costs resulting from business activities that are neither regulated nor compensated for by means of national governance. The changing distribution of risks poses a threat to the legitimacy of business firms that normally derive their legitimacy from operating in compliance with the legal rules of democratic nation states. However, during the process of globalization, the regulatory power of nation states has been weakened (...) and many production processes have been shifted to states with weak regulatory frameworks where businesses operate outside the reach of the democratic nation state. As a result, business firms have to address the various legitimacy challenges of their operations directly and cannot rely upon the legitimacy of their regulatory environment. These developments challenge the dominant approach to corporate governance that regards shareholders as the only stakeholder group in need of special protection due to risks not covered by contracts and legal regulations. On the basis of these considerations, we argue for a democratization of corporate governance structures in order to compensate for the governance deficits in their regulatory environment and to cope with the changing allocation of risks and costs. By way of democratic involvement of various stakeholders, business firms may be able to mitigate the redistribution of individual risk and address the resulting legitimacy deficits even when operating under conditions of regulatory gaps and governance failure. (shrink)

This paper demonstrates the political perspective of corporate social responsibility disclosures and, drawing on Weber’s notion of traditionalism, seeks to explain what motivates companies to make such disclosures in a traditional setting. Annual reports of 23 banking companies in Bangladesh are analysed over the period 2009–2012. This is supplemented by a review of documentary evidence on the political and social activities of corporations and reports published in national and international newspapers. We found that, in the banking companies over the period (...) of study, apparently neutral, corporate, philanthropic activities disclosed and promoted in CSR reports are inextricably linked to powerful leaders’ personal projects and the ruling party’s agendas. We have demonstrated elements of traditional societies, including personal loyalty and the public display of loyalty, the master–servant relationship, and obedience to personal rather than formal authority, provide an understanding of why banks have employed politically charged CSR disclosure strategies. The paper contributes to disclosure studies where political motivations of corporate disclosure rarely discussed. The paper extends the debate on political CSR by demonstrating that the role of family and familial values at the organisational and national levels may be much more important when it comes to CSR disclosure and activities. (shrink)

The hypothetical conflict between self‐interest, corporate interest, and the common good is one of the hottest debated issues in business ethics. This article focuses on a particular corporate social responsibility approach within the field of sustainable (project) finance, which has the potential—given that certain reform measures are adopted—to overcome the alleged trade‐off between self‐interest and the common good. The approach is labeled as the Equator Principles (EPs) framework, which celebrated its tenth anniversary and the formal launch of the third generation (...) of the EPs (EP III) in 2013. The article shows how companies can theoretically be both profitable and socio‐environmentally responsible by adhering to the EPs. The article proceeds as follows: Before moving on to the EPs, section 2 defines the key terms self‐interest and common good. Section 3 then analyzes the EPs from a business ethics perspective. Section 4 shows how the EPs can help in solving the potential trade‐off between self‐interest and the common good—provided that the EPs are substantially revised. These required reform steps are discussed in section 5. The article ends with a summary of the main findings. (shrink)

Arguably, the corporate social responsibility practices of multinational enterprises are influenced by a wide range of both internal and external factors. Perhaps, most critical among the exogenous forces operating on MNEs are those exerted by state and other key institutional actors in host countries. Crucially, academic research conducted to date offers little data about how MNEs use their CSR activities to strategically manage their relationship with those actors in order to gain legitimisation advantages in host countries. This paper addresses that (...) gap by exploring interactions between external institutional pressures and firm-level CSR activities, which take the form of community initiatives, to examine how MNEs develop their legitimacy-seeking policies and practices. In focusing on a developing country, Sri Lanka, this paper provides valuable insights into how MNEs instrumentally utilise community initiatives in a country where relationship-building with governmental and other powerful non-governmental actors can be vitally important for the long-term viability of the business. Drawing on neo-institutional theory and CSR literature, this paper examines and contributes to the embryonic but emerging debate about the instrumental and political implications of CSR. The evidence presented and discussed here reveals the extent to which, and the reasons why, MNEs engage in complex legitimacy-seeking relationships with Sri Lankan host institutions. (shrink)

ABSTRACT:In this study, we investigate how different internal and external stakeholders influence the innovation strategy of a social enterprise to adopt product, process, and partnership innovations that impact either social or commercial performance. Relying on survey data from a sample of work integration social enterprises, we find that in situations of turbulence, administrative leaders do not significantly influence the innovation strategy of a social enterprise. Instead, board members and external stakeholders seem to play a role. Our study contributes to strategic (...) and business ethics research on social enterprises and, more broadly, to the literature that explores how business organizations combine social value creation and wealth generation. (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)