Organisations increasingly use digital nudges to influence their workforces’ behaviour without coercion or incentives. This can expose employees to arbitrary domination by infringing on their autonomy through manipulation and indoctrination. Nudges might furthermore give rise to the phenomenon of “organised immaturity.” Adopting a balanced approach between overly optimistic and dystopian standpoints, I propose a framework for determining the moral permissibility of digital nudging in the workplace. In this regard, I argue that not only should organisations provide pre-discursive justification of nudges (...) but they should also ensure that employees can challenge their implementation whenever necessary through legitimation procedures. Building on Rainer Forst’s concept of the right to justification, this article offers a way to combine contract- and deliberation-based theories for addressing questions in business ethics. I further introduce the concept of meta-autonomy as a capacity that employees can acquire to counter threats of arbitrary domination and to mitigate organised immaturity. (shrink)

The article presents a novel normative model of shared responsibility for remedying unjust labor conditions and protecting workers’ rights in global supply chains. While existing literature on labor governance in the globalized economy tends to focus on empirical and conceptual investigations, the article contributes to the emerging scholarship by proposing moral justifications for labor governance schemes that go beyond voluntary private regulations and include public enforcement mechanisms. Drawing on normative theories of justice and on empirical-legal research, our Labor Model of (...) Shared Responsibility introduces three main claims: First, that responsibility for protecting and promoting labor standards in global supply chains should be shared by all private and institutional actors involved (whether directly or indirectly) in the production and distribution processes. Second, we offer a normative model for allocating responsibility among the various actors, based on five principles: connectedness, contribution, benefit, capacity, and power. Last, we demonstrate how the normative model could be implemented through various national and international institutional mechanisms. (shrink)

Political corporate social responsibility (PCSR) calls for firms to implement and engage in deliberative democracy processes and structures, addressing governance gaps where governments are unwilling or unable to do so. However, an underlying assumption that the implementation of PCSR will enrich democratic processes in society has been exposed and challenged. In this conceptual article, we explore this challenge by developing a framework to reveal the dynamics of firms’ deliberative democratic processes and structures (meso level), and those at nation state (macro (...) level). Using existing cases as illustrative examples, we demonstrate that despite the public good premise of PCSR theory toward thickening the overall democracy in a society, corporate democratization at meso level can have the opposite effect and may actually erode macro-level democratic control of society and the economy. These findings imply a need for multilevel analysis in PCSR research and greater consideration of state-level public institutions and the responsibilities of business firms toward those institutions. Furthermore, we contribute to the PCSR literature by identifying the disruptive mechanisms associated with these dynamics and outline two alternative perspectives to allow firms to continue to take on political responsibilities. (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)

This article argues that the concept of deliberation is construed too narrowly in political corporate social responsibility (CSR) and that a concept of deliberation for political CSR should err toward useful speech acts rather than reciprocity and charity. It draws from the political philosophy, labor relations, and business ethics literatures to outline a framework for an extended notion of deliberative engagement. The characters of deliberative behavior and deliberative environment are held to generate four modes of engagement: strategic deliberation, unitarist deliberation, (...) pluralist deliberation, and deliberative activism. The article concludes by arguing that political CSR will be better positioned to realize its potential by moving away from primarily consensus-centered objectives to a more responsive range of deliberative goals and practice. (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 article presents a novel normative model of shared responsibility for remedying unjust labor conditions and protecting workers’ rights in global supply chains. While existing literature on labor governance in the globalized economy tends to focus on empirical and conceptual investigations, the article contributes to the emerging scholarship by proposing moral justifications for labor governance schemes that go beyond voluntary private regulations and include public enforcement mechanisms. Drawing on normative theories of justice and on empirical-legal research, our Labor Model of (...) Shared Responsibility introduces three main claims: First, that responsibility for protecting and promoting labor standards in global supply chains should be shared by all private and institutional actors involved (whether directly or indirectly) in the production and distribution processes. Second, we offer a normative model for allocating responsibility among the various actors, based on five principles: connectedness, contribution, benefit, capacity, and power. Last, we demonstrate how the normative model could be implemented through various national and international institutional mechanisms. (shrink)

Implementing corporate social responsibility (CSR) in supply chains is not a trivial task. In fact, many firms in recent years have publicly proclaimed that in order to keep their CSR commitments, they had to reduce reliance on external suppliers by vertically integrating their operations. Our aim in this article is to examine whether there is truly a relationship between a firm’s CSR performance and its level of vertical integration. Drawing on a multi-industry sample of 2,715 firm-year observations, and after addressing (...) endogeneity concerns, we demonstrate that firms with higher CSR performance tend to vertically integrate more (or, outsource less). We also demonstrate that this tendency is weaker for firms that have higher degrees of asset specificity or international diversification. Our core conclusion is that CSR performance and outsourcing are at odds, but firms can reconcile this tension by deepening their collaborations with suppliers. (shrink)

Michael Walzer is one of the most distinguished political philosophers and social critics of this century. His ideas have had great import and influence in political philosophy and political discussion, yet very few of his ideas have been incorporated explicitly into the business ethics literature. We argue that Walzer’s work provides an important conceptual canvas for business ethics scholars that has not been adequately explored. Scholars in business ethics often borrow from political theory and philosophy to generate new insights and (...) develop new substantive contributions. Many valuable theoretical resources are already used extensively—particularly Aristotle, Kant, Marx and a variety of utilitarian philosophers. Walzer offers another set of resources to bring to the conversation of what business ethics is and how business ethicists add value. This paper provides an opportunity to delve further into Walzer’s writings, particularly themes that are tied to business ethics, and to illustrate how his ideas can be extended to reshape our understanding of the field and develop new perspectives on ethical issues in commerce. (shrink)

ABSTRACTThe question of how to engage with stakeholders in situations of value conflict to create value that includes a plurality of conflicting stakeholder value perspectives represents one of the crucial current challenges of stakeholder engagement as well as of value creation stakeholder theory. To address this challenge, we conceptualize a discursive sharing process between affected stakeholders that is oriented toward discursive justification involving multiple procedural steps. This sharing process provides procedural guidance for firms and stakeholders to create pluralistic stakeholder value (...) through the discursive accommodation of diverging stakeholder value perspectives. The outcomes of such a discursive value-sharing process range from stakeholder value dissensus to low and increasing levels of stakeholder value congruence to stakeholder value consensus. Hence, this article contributes to the emerging literature on integrative stakeholder engagement by conceptualizing a procedural framework that is neither overly oriented towards dissensus nor consensus. (shrink)

The legitimacy of multi-stakeholder initiatives (MSIs) as institutions for social and environmental governance in the global economy has received much scholarly attention over the past years. To date, however, research has yet to focus on assessing the legitimacy of MSIs in their interactions with other actors within larger systems of deliberation. Drawing on the deliberative systems perspective developed within deliberative democracy theory, we theorise a normative framework to evaluate the roles of MSIs within the broader systems of governance they co-construct (...) through their interactions with other initiatives, governments, non-governmental organisations, and other external actors. As we demonstrate in our evaluation of the illustrative case of the Bangladesh Accord on Fire and Building Safety as a MSI in the context of the Bangladeshi garment industry, this framework can help researchers assess whether a MSI ultimately serves to enhance or undermine the deliberative legitimacy of the overall system of which it forms a part. (shrink)

Multi-stakeholder initiatives (MSIs)—private governance mechanisms involving firms, civil society organizations, and other actors deliberating to set rules, such as standards or codes of conduct, with which firms comply voluntarily—have become important tools for governing global business activities and the social and environmental consequences of these activities. Yet, this growth is paralleled with concerns about MSIs’ deliberative capacity, including the limited inclusion of some marginalized stakeholders, bias toward corporate interests, and, ultimately, ineffectiveness in their role as regulators. In this article, we (...) conceptualize MSIs as deliberative systems to open the black box of the different elements that make up the MSI polity and better understand how their deliberative capacity hinges on problems in different elements. On the basis of this conceptualization, we examine how deliberative mini-publics—forums in which a randomly selected group of individuals from a particular population engage in learning and facilitated deliberations about a topic—can improve the deliberative capacity of MSIs. (shrink)

The United Nations (UN) 2030 Agenda for Sustainable Development has considerable potential for achieving a more sustainable future. However, the concrete realisation of Sustainable Development Goals (SDGs) is impeded by how they are implemented by a diverse set of competent agents. This conceptual paper draws on social impact theory to investigate how businesses can utilise the SDG framework to achieve positive social outcomes. We identify two pathways that can guide businesses to improve their SDGs interventions, which entail considering the _interconnections_ (...) between the goals that are directly or indirectly affected by the initiative at stake and the _inclusiveness_ of the actors affected by the SDGs. Building on the literature on hybrid organising (to frame interconnectedness) and the literature on multi-stakeholder partnerships and deliberative governance (to frame inclusiveness), we discuss a set of organisational mechanisms and transformations that can help businesses ensure that their SDGs interventions are more socially impactful. By doing so, this paper extends the literature on the role of companies for sustainable development and provides some practical implications. (shrink)

Voluntary sustainability standards (VSS) aim to encourage ethical behaviors of organizations, yet studies show that many VSS adopters do not live up to these promises. Existing literature typically attributes the reason for this ineffectiveness to either policy–practice decoupling, owing to a lack of adhering to VSS requirements, or means–ends decoupling, owing to a lack of adapting to the local context. However, little is known about how the contradictory needs of adherence and adaptation evolve throughout VSS implementation. Building on the knowledge (...) transfer literature, we develop a dynamic conceptual framework that distinguishes two phases of VSS implementation. Specifically, we theorize how tensions emerge in the transition between phases since the first phase primarily calls for adherence, whereas the second calls for adaptation. Applying this framework, we develop propositions to illustrate how these tensions relate to different VSS characteristics: stringency, enforcement, and scope. The article concludes with implications and future research directions for VSS scholarship. (shrink)

The disaggregation and geographic dispersion of global value chains (GVCs) have expanded the responsibility of international buyers from firm-level corporate social responsibility (CSR) towards social sustainability of their emerging country suppliers. We theorize, in this paper, that the effectiveness of lead firms’ GVC governance strategies for social sustainability—which can be audit-based or cooperation-based—depends on the local institutional context of the supplier. Supplier country institutions exert legal and civil society pressures for social sustainability, which shape suppliers’ attitude and receptiveness towards lead (...) firm requests. Using unique primary data from 356 garment and footwear suppliers in 11 emerging countries, which supply to Western European or North American buyers, we show that GVC governance strategies are particularly effective for suppliers’ social sustainability implementation when there is ‘contextual fit’ with local institutional pressures for social sustainability in the supplier country. Our study identifies the boundary conditions of GVC governance modes, and demonstrates a complementary relationship between organizational arrangements and their institutional-level counterparts in the context of social sustainability. (shrink)

Flagging labor governance in far-flung supply networks has prompted greater scrutiny of instrumental CSR and calls for models that are tethered more closely to accountability, constraint, and oversight. Political CSR is an apt response, but this paper seeks to buttress its deliberative moorings by arguing that the agonist notion of ‘domesticated conflict’ provides a necessary foundation for substantive deliberation. Because deliberation is more viable and effective when coupled with some means of coercion, a concept of CSR solely premised on reciprocal (...) corporate-stakeholder engagement is pre-mature; efforts should first be directed toward the antecedents of reciprocity and how it is to be achieved, and only then does deliberation become a reliably substantive exercise. The resulting account of agonistic CSR is generated through agonistic principles of realism, pro-action, contestation, and countervailence, and illustrated by the Bangladesh Accord. (shrink)

A predominant assumption in studies of deliberative democracy is that stakeholder engagements will lead to rational consensus and to a common discourse on corporate social and environmental responsibilities. Challenging this assumption, we show that conflict is ineradicable and important and that affects constitute the dynamics of change of the discourses of responsibilities. On the basis of an analysis of social media engagements in the context of the grand challenge of plastic pollution, we argue that civil society actors use mobilization strategies (...) with their peers and inclusive-dissensus strategies with corporations to convert them to a new discourse. These strategies use moral affects to blame and shame corporations and solidarity affects to create feelings of identification with the group and to avoid disengagement and polarization. Our research contributes to the literature on deliberative democracy and stakeholder engagement in social media in the collective constructions of discourses on grand challenges. (shrink)

Previous research on reactivity—defined as changing organizational behaviour to better conform to the criteria of measurement in response to being measured—has found significant variation in company responses toward sustainability metrics. We propose that reactivity is driven by dialogue, motivation, and capacity in a configurational way. Empirically, we use fuzzy set qualitative comparative analysis to analyze company responses to the sustainability index FTSE4Good. We find evidence of complementary and substitute effects between motivation and capacity. Based on these effects, we develop a (...) typology of reactivity to sustainability metrics, which also theorizes the use of metrics as tools for performance feedback and the building of calculative capacity. We show that when reactivity is studied configurationally, we can identify previously underacknowledged types of responses. We discuss the theoretical and practical implications for studying and using sustainability metrics as governance tools for responsible behaviour. (shrink)

Business is expected to contribute to grand challenges (GC) such as poverty within their corporate social responsibilities. Multi‐stakeholder initiatives (MSIs) have developed to a popular governance model to address GC. While existing scholarship has discussed the positive and negative aspects of MSIs, we know relatively little about how corporations within MSIs are held accountable. The objective of the study is to analyze the dynamics of accountability relationships between the corporate actor and the accountability forum to conceive a process model for (...) effective accountability relationships in developing countries. We conducted an inductive study which explored the tensions the accountability forum perceives in MSI accountability relationships and the criteria to meet the forum's accountability claims. Our study identified four accountability criteria: transparency, inclusion, procedural fairness, and efficacy. Our main theoretical claim is that considering the four accountability criteria in the process of facilitating, dialoguing, and evaluating allows affected stakeholders to validate and match legitimacy claims with their own expectations, and thus, manage MSIs more effectively. Our contribution to existing scholarship on MSIs in developing countries is that we offer a novel perspective on analyzing the effectiveness of MSIs to address GC through our focus on one element of MSIs––specifically accountability. Beyond academic theorizing, this perspective may well hold value for nongovernmental organizations, policymakers, and business managers as it advances a concept of responsibility based on a set of accountability criteria which have the potential to become a cornerstone for how MSI members can organize to effectively address GC in developing countries. (shrink)

Global supply chains (GSCs) present the International Labour Organization (ILO) with a challenge that goes to the heart of its founding mandate and structure, one built on the prominence of nation states and national representatives of employers and workers. In February 2020, discussions in the ILO on the rise of GSCs reached deadlock. To fully understand why the ILO has been unable to address decent work deficits in GSCs greater attention needs to be paid to contestation, power and legitimacy in (...) the deliberation of labour governance. Drawing on the concept of agonistic pluralism we examine the evolution of the ILO’s attempt to establish a new labour standard on GSCs under three empirical phases between 2002 and 2020. We argue that shifting power asymmetries between the tripartite constituents of governments, employers and workers, increased counter-hegemonic contestation, and intensified questioning of the deliberative legitimacy of the adversaries, explain the dissensual relations at the ILO. This article contributes to the literature on labour standards in GSCs in demonstrating how and why contestation underpins the evolution of labour governance over time. (shrink)