Business activity can be analyzed through a ‘risk awareness’ perspective and a ‘responsibility awareness’ perspective. However, risk and responsibility are actually interdependent. Risk-taking triggers responsibility issues and taking responsibility means risking being asked critical questions. This article suggests some first steps for combining these two perspectives conceptually. After several introductory illustrations showing how risk and responsibility issues are intertwined, the article looks separately each at risk and at responsibility. Then the argument that such perspectives could be usefully combined is elaborated (...) further from a theoretical angle and from a practical angle, by looking at various ethical issues and by presenting paradigmatic examples of balancing or sharing risk and responsibility related to leadership, to ERM and to insurance. (shrink)

In his political philosophy, John Rawls has a normative notion of reasonable behaviour expected of citizens in a pluralist society. We interpret the various strands of this idea and introduce them to the discourse on stakeholder dialogue in order to address two shortcomings in the latter. The first shortcoming is an unnoticed, artificial separation of words from actions which neglects the communicative power of action. Second, in its proposed new role of the firm, the discourse of political CSR appeared to (...) offer a promising synthesis of deliberation and action. However, the discourse has been criticized for its shortcoming in failing to provide a regulatory environment for corporation—stakeholder dialogue. Through our interpretation of Rawls’ notion of reasonableness in citizens, the article makes two important theoretical contributions to the debate on stakeholder dialogue. First, we transfer Rawls’ injunction in insisting that dialogues between business corporations and their weaker stakeholders must be understood as consisting of both verbal exchanges and actions. Second, we propose that the coercive power of government ought to provide a necessary context for stakeholder dialogue, and that by doing so, it can provide a way forward for the discourse of political CSR. We illustrate the usefulness of this contribution from Rawls in an analysis of BP’s behaviour towards thousands of victims following the Deepwater Horizon blowout in 2010. (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)

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)

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)

ABSTRACT:We develop the concept of stakeholder salience to account for stakeholders who should matter to the firm, even when managers do not perceive them as important. While managers are responsible for attributing salience to stakeholders, they can overlook or ignore stakeholder importance because of market frictions that affect managerial perceptions or induce opportunism. When this happens, corporate financial and social performance can suffer. Thus, we propose that the perceptions of organizational and societal stakeholders should also codetermine the salience of the (...) focal stakeholder to the firm. We also propose that stakeholder dialogue can reduce the impacts that market frictions can have on managerial perceptions of stakeholder interests that should matter to the firm. Finally, we discuss how the refined conceptualization of stakeholder salience might have better predictive validity, be more normative, and make instrumental and normative stakeholder theory more convergent. (shrink)

Three global developments situate the context of this investigation: the increasing use of social media by organizations and their employees, the burgeoning presence of social media policies, and the heightened focus on corporate social responsibility. In this study the intersection of these trends is examined through a content analysis of 112 publicly available social media policies from the largest corporations in the world. The extent to which social media policies facilitate and/or constrain the communicative sensibilities and values associated with contemporary (...) notions of CSR is considered. Overall, findings indicate that a large majority of policies, regardless of sector or national headquarters, increasingly inhibit communicative tenets of contemporary CSR and thereby diminish employee negotiation and participation in the social responsibilities of corporations. Moreover, policies generally enact organizational communication practices that are contrary to international CSR guidelines. Findings suggest that social media policies represent a relatively unrecognized development in the institutionalization of CSR communicative norms and practices that call into question the promising affordances of social media for the inclusion of various voices in the public negotiation of what constitutes corporate social responsibility. (shrink)

ABSTRACT:Does effective moral judgment in business ethics rely upon the identification of a suitable set of moral principles? We address this question by examining a number of criticisms of the role that principles can play in moral judgment. Critics claim that reliance on principles requires moral agents to abstract themselves from actual circumstances, relationships and personal commitments in answering moral questions. This is said to enforce an artificial uniformity in moral judgment. We challenge these critics by developing an account of (...) principle-based moral judgment that has been widely discussed by contemporary Kantian scholars. In so doing we respond to some basic problems raised by so-called “moral particularists” who voice theoretical objections to the role of principles as well as to contemporary business ethicists who have criticized principle-based moral judgment along similar lines. We conclude with some future areas of research. (shrink)

This article positions ‘safety’ and ‘risk’ as key public health problems in mental health. I demonstrate that discourse about safety occurs extensively in relation to mental health, but it does not occur in a way where the mental health system gets any safer for the key actors involved. Ongoing unproductive discourse occurs because the different actors involved are speaking at cross purposes and about different things against the background of a ‘public’ discourse focused on safety crises. I map the general (...) interests of the main set of actors to demonstrate the conflicted and complex nature of discourse around mental health safety. In response I outline a dialogical approach to safety and risk based on the work of Habermas and values of recovery. This is presented as a framework from which to assess whether discourse is occurring effectively to develop shared meanings. Shared understandings of safety will mean that the safety needs of relevant actors can be understood and negotiated rather than giving way to an actuarial process which does not take into consideration the context of a person’s life. (shrink)

This article addresses the democratic deficit that emerges when private corporations engage in public policy, either by providing citizenship rights and global public goods (corporate citizenship) or by influencing the political system and lobbying for their economic interests (strategic corporate political activities). This democratic deficit is significant, especially when multinational corporations operate in locations where national governance mechanisms are weak or even fail, where the rule of law is absent and there is a lack of democratic control. This deficit may (...) lead to a decline in the social acceptance of the business firm and its corporate political activities and, thus, to a loss of corporate legitimacy. Under these conditions corporations may compensate for the emerging democratic deficit and reestablish their legitimacy by internalizing democratic mechanisms within their organizations, in particular in their corporate governance structures and procedures. The authors analyze the available corporate governance models with the help of a typology and discuss the possible contributions of a new form of democratic corporate governance. (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)

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 initiative to ensure oil-palm smallholders around the world participate in sustainable certification is increasing. Different efforts were strategised including increasing awareness and providing financial support. Despite that, the number of smallholders’ participation in sustainable certification is relatively low. This study embarked on the objective to identify the role of social structure, namely social interaction ties in affecting smallholders’ participative behaviours. Moreover, this study is also looking on the mediating impact of deliberative communication and responsible leadership in explaining the relationship (...) between the two previously stated constructs. Using a quantitative research design, this study collected data from 440 smallholders as its respondents. Samples were randomly selected, and questionnaires were distributed to obtain their responses. Data collected were then analysed using PLS-SEM to test the developed hypothesis. Accordingly, the findings indicate that social interaction ties have a significant impact on smallholders’ decisions to participate in sustainable certification. Furthermore, both deliberative communication and responsible leadership were proven to be significant mediators. This study provides insights on how smallholders’ participation in sustainable certification can be improved by tapping on the social structure elements as well as adopting deliberative communication and responsible leadership as a method to communicate and lead with the smallholders. This shall expand literature related to organisation psychology in rural areas and sustainability. (shrink)

Attempts to employ discourse ethics for assessing communication and information technologies have tended to focus on managerial and policy-oriented contexts. These initiatives presuppose institutional resources for organizing sophisticated consultation processes that elicit stakeholder input. Drawing on Jürgen Habermas’s discourse ethics, this paper supplements those initiatives by developing a more widely usable framework for moral inquiry and reflection on problematic cyberpractices. Given the highly idealized character of discourse ethics, a usable framework must answer two questions: How should those who lack organizational (...) power conduct their moral inquiry under non-ideal conditions of discourse? How ought they to understand the moral force of the judgments they reach under such conditions? In response, I develop the heuristic implications of Habermas’s principle of universalization. To render that principle usable for non-ideal discourse, I propose a modification that yields a scalar measure of “dialogically robust” judgments that are responsive to the actual state of discussion. To illustrate the use of these principles, I sketch two case studies, which examine the moral acceptability of violent video gaming and government cyber-surveillance. (shrink)

The idea that business firms qualify as group moral agents offers an attractive basis for understanding corporate moral responsibility. However, that idea gives rise to the “corporate autonomy problem” (CAP): if firms are moral agents, then it seems we must accept the implausible conclusion that firms have basic moral rights, such as the rights to life and liberty. The question, then, is how one might retain the fruitful idea of firms as moral agents, yet avoid CAP. A common approach to (...) avoiding CAP appeals to specific features of human embodiment, such as vulnerability to pain, as the basis for attributing moral rights to human persons but not to firms. But that response has less purchase in a Kantian framework, which does not ground moral status in such particularities of human embodiment, but rather in the rational nature that humans share with other rational beings. To avoid CAP while retaining a (broadly) Kantian framework, one does better to rely on features of firms as cooperative, compositionally derivative moral agents, created for the pursuit of specific ends. As derivative agents, firms do not qualify as Kantian ends in themselves, and thus are not appropriate bearers of basic moral rights. To further clarify the level of consideration we owe to firms, I draw on Darwall’s distinction between recognition respect and moral esteem, arguing that we should not respect firms as unconditional ends in themselves, but rather esteem morally autonomous firms as collective achievements of their human members. (shrink)

“No one can serve two masters.” This Bible quotation highlights an irreducible contradiction, which echoes numerous organizational settings. This article considers the under-explored ethical implications of paradoxical injunctions created by such a contradiction at the managerial level. Contradictory organizational constraints turn into paradoxant systems , where the organization structurally settles paradoxical injunctions which challenge managerial ethics in practice. We then ask what managerial responsibility means in such contexts and find that managers have then to reshape their practice as a situated (...) construction through constant mediation between different “masters” and bricolage (i.e., tinkering with concepts). An ethnographic case study of an anti-money laundering service in an investment bank illuminates this phenomenon from a practice perspective. The possibility to enact an actual ethical practice within the contradictory organization relies on a new role of the manager. This implies drawing on an approach of responsible management as an enactment of ethics in practice which is situated within the framework of a new conception of both the organization, as a structurally “paradoxant system,” and the manager as a mediator in charge of enacting coherence. (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)

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)

ABSTRACT:There is considerable overlap between the interests of business ethicists and those of political philosophers. Questions about the moral justifiability of the capitalist system, the basis of property rights, and the problem of inequality in the distribution of income have been of central importance in both fields. However, political philosophers have developed, especially over the past four decades, a set of tools and concepts for addressing these questions that are in many ways quite distinctive. Most business ethicists, on the other (...) hand, consider their field to be primarily a domain of applied ethics, and so adopt methods and conceptual frameworks developed by moral philosophers. In this paper, we discuss some of the salient differences between these two approaches, and suggest some ways in which business ethicists could benefit from taking a more “political philosophy” approach to these questions. Throughout, we underline the importance of seeking greater compatibility among the principles used in normative theorizing about markets, regulations, corporate governance, and business practices. (shrink)

ABSTRACT:We call for business ethics scholars to focus more attention on how individuals and organizations respond in the aftermath of unethical behavior. Insight into this issue is drawn from restorative justice, which moves beyond traditional approaches that emphasize retribution or rehabilitation to include restoring victims and other affected parties, reintegrating offenders, and facilitating moral repair in the workplace. We review relevant theoretical and empirical work in restorative justice and develop a conceptual model that highlights how this perspective can enhance theory (...) and empirical research in business ethics. We specifically identify topic areas that we believe have particular promise for business ethics scholars to pursue. We close our paper by discussing implications of the restorative justice approach for practicing managers. (shrink)

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

Deliberation has faced criticism with regard to its application to business, on the basis that it can be misused to disseminate an ideology, divert attention from genuine debates, or strengthen the power of certain people. We suggest that Aristotle’s notion of deliberation can mitigate these ethical risks and help companies strengthen their deliberative practices. A comprehensive perspective based on Aristotelian deliberation reveals the relevance of (a) individual and collective deliberation, promoting a virtuous and meaningful reflection, free from ideological conditioning; (b) (...) deliberation on ends and means that facilitates a transcendental and rooted reflection, thereby avoiding artificial debates; and (c) deliberation that is decisive and cooperative and thus prevents instrumentalization of deliberation by the strongest. We contribute to the discussion of the relationship between business and society by identifying the different steps in the deliberative process and promoting a dynamic perspective on deliberation. (shrink)

The work of Donaldson and Dunfee offers an example of how normative and descriptive approaches to business ethics can be integrated. We suggest that to be truly integrative, however, the theory should explore the processes by which such integration happens. We, therefore, sketch some preliminary thoughts that extend Integrative Social Contracts Theory by beginning to consider the process by which microsocial contracts are connected to hypernorms.

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)