Much business ethics and corporate social responsibility literature suggests, implicitly or explicitly, that firms ought to engage in activities that can be characterized as philanthropy, namely, expending resources beyond what is required by law and market norms to promote others’ welfare at the expense of firm profits. However, this literature has struggled to provide a normative framework for evaluating corporate philanthropy, although scholars have noted that such expenditures can potentially remedy market failures and provide public goods more efficiently. I articulate (...) two specific rationales that can justify corporate philanthropy based on considerations of welfare economics: 1) firms making strategic but high-risk investments in activities that are likely to generate positive externalities even if they prove unprofitable and 2) firms possessing a strong comparative advantage in their ability to address a social problem at lower social cost. Moreover, these rationales can be evaluated by a concept I develop called the philanthropy multiplier, indicating the ratio of net positive externalities to net costs. I suggest that firms consider publicizing their philanthropy multipliers, and I discuss theoretical and practical implications. (shrink)

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

This paper argues that identity economics and social psychology provide a useful frame of reference to interpret supererogatory actions and suggests that identity of companies can be a driving force behind these actions. Companies may perform actions against the narrow sense of economic rationality if those actions serve purposes of high importance for them. The climate crisis and the more recent COVID‐19 crisis call for supererogatory actions by companies more than ever before.

Although the literature on organizational justice enactment is becoming richer, our understanding of the role of the deontic justice motive remains limited. In this article, we review and discuss theoretical approaches to and evidence of the deontic justice motive and deontic justice enactment. While the prevalent understanding of deontic justice enactment focuses on compliance, we argue that this conceptualization is insufficient to explain behaviors that go beyond the call of duty. We thus consider two further forms of deontic behavior: humanistic (...) and supererogatory behavior. Drawing on the concepts of situation strength and person strength, we further argue that the reduced variance in behavior across morally challenging situations makes deontic justice enactment visible. We thus observe deontic justice enactment when an actor’s deontic justice motive collides with strong situational cues or constraints that guide the actor to behave differently. We formulate propositions and develop a theoretical model that links the deontic justice motive to moral maturation and deontic justice enactment. (shrink)