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)

This article pursues the question whether and inasmuch theories of corporate responsibility are dependent on conceptions of managerial freedom. I argue that neglect of the idea of freedom in economic theory has led to an inadequate conceptualization of the ethical responsibilities of corporations within management theory. In a critical review of the history of economic ideas, I investigate why and how the idea of freedom was gradually removed from the canon of economics. This reconstruction aims at a deconstruction of certain (...) axioms of neoclassical economics that hamper contemporary efforts in integrating ethics firmly into management education. I intend to show by these deconstructive endeavors that a constructive use of the idea of responsible freedom could correct and complement the current quantitative focus in business theory through qualitative orientations. I argue that with the help of qualitative success criteria, the strategic integration of the tenets of both business ethics and Corporate Social Responsibility into business practice can be advanced by further research. (shrink)

More and more companies are publicly taking a stand on social and political issues such as gay marriage legislation. This paper argues that this type of engagement, which can be called “corporate political advocacy,” raises new conceptual and normative challenges especially for theories of corporate responsibility. Furthermore, it poses practical challenges for managers who are confronted with it. This paper addresses all three challenges: first, it defines and conceptualizes corporate political advocacy and distinguishes it from other forms of corporate political (...) involvement. Second, it makes normative sense of corporate advocacy as an element of corporate responsibility. Third, it reflects on the practical implications for managers dealing with this issue. (shrink)

ABSTRACT:In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the key role of (...) empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals. (shrink)

The globally generated concepts of environment and sustainability are fast gaining currency in international business discourse. Sustainability concerns are concurrently becoming significant to business planning around corporate social responsibility and integral to organizational strategies toward enhancing shareholder value. The mindset of corporate managers is a key factor in determining company approaches to sustainability. But what do corporate managers understand by sustainability? Our study explores discursive meaning negotiation surrounding the concepts of environment and sustainability within business discourse. The study is based (...) on qualitative interpretive research drawing from symbolic interactionism which postulates that meaning in discourse is an essentially contested domain dependent upon negotiation in the Habermasian tradition of mutually respectful dialogue. Data from semi-structured intensive interviews of a small sample of senior corporate managers was analyzed to examine how corporate elites in India frame their approach to sustainability issues and respond to external pressures for deeper corporate responsibility. The findings point to the existence of a distinctively local narrative with strong potential for the discursive negotiation of personal and collective understanding of ethical and socio-cultural values that may help internalize broader sustainability considerations into corporate decision-making processes. (shrink)

This article pursues the question whether and inasmuch theories of corporate responsibility are dependent on conceptions of managerial freedom. I argue that neglect of the idea of freedom in economic theory has led to an inadequate conceptualization of the ethical responsibilities of corporations within management theory. In a critical review of the history of economic ideas, I investigate why and how the idea of freedom was gradually removed from the canon of economics. This reconstruction aims at a deconstruction of certain (...) axioms of neoclassical economics that hamper contemporary efforts in integrating ethics firmly into management education. I intend to show by these deconstructive endeavors that a constructive use of the idea of responsible freedom could correct and complement the current quantitative focus in business theory through qualitative orientations. I argue that with the help of qualitative success criteria, the strategic integration of the tenets of both business ethics and Corporate Social Responsibility into business practice can be advanced by further research. (shrink)

The author identifies the major micro-, meso-, and macro-level financial risk shifting factors that contributed to the Great Global Recession and how the absence of a compelling moral vision of responsible financial risk management perpetuated the economic crisis and undermined the recovery by blind reliance upon insufficiently accountable bailouts. The author offers a new theoretical model of Sustainable Stakeholder Capitalism by exercising moral imagination which inclusively and moderately balances four multi-level factors: types of capitalism, moral theories, human nature drives, and (...) credit risk profiles. Finally, the author recommends micro-, meso-, and macro-level practical reforms to prevent a recurrence of the current economic freefall, to re-create systemic global financial institution integrity, and to promote responsible risk management for sustainable global prosperity for current and future generations. (shrink)

ABSTRACT:Partnerships between companies and NGOs have received considerable attention in CSR in the past years. However, the role of NGO legitimacy in such partnerships has thus far been neglected. We argue that NGOs assume a status as special stakeholders of corporations which act on behalf of the common good. This role requires a particular focus on their moral legitimacy. We introduce a conceptual framework for analysing the moral legitimacy of NGOs along three dimensions, building on the theory of deliberative democracy. (...) Against this background we outline three procedural characteristics which are essential for judging the legitimacy of NGOs as potential or actual partners of corporations. (shrink)

Interactions between corporations and nonprofits are on the rise, frequently driven by a corporate interest in establishing credentials for corporate social responsibility (CSR). In this article, we show how increasing demands for accountability directed at both businesses and NGOs can have the unintended effect of compromising the autonomy of nonprofits and fostering their co-optation. Greater scrutiny of NGO spending driven by self-appointed watchdogs of the nonprofit sector and a prevalence of strategic notions of CSR advanced by corporate actors weaken the (...) ability of civil society actors to change the business practices of their partners in the commercial sector. To counter this trend, we argue that corporations should embrace a political notion of CSR and should actively encourage NGOs to strengthen “downward accountability” mechanisms, even if this creates more tensions in corporate–NGO partnerships. Rather than seeing NGOs as tools in a competition for a comparative advantage in the market place, corporations should actively support NGO independence and critical capacity. (shrink)

This article develops an "ordonomic" approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to (...) organize mutually advantageous cooperation. Second, business ethics should teach the management competencies necessary to fulfill business's societal mandate. These competencies are optimization competence in the basic game of value creation, governance competence in the meta game of (political) rule setting, and the three discourse-related skills of orientation competence, reception competence, and communication competence necessary for engaging in the meta-meta game. Third, companies can help solve global problems through global corporate citizenship if they participate as political and moral actors in rule-setting processes and rule-finding discourse aimed at laying the foundation for value creation on a global scale. (shrink)

Social entrepreneurship is not just an objective description of a phenomenon; it also carries a positive normative connotation. However, the academic discourse barely reflects social entrepreneurship’s inherent normativity and often grounds it implicitly on the mission of a social enterprise. In this paper, we argue critically that it is insufficient to ground social entrepreneurship’s inherent normativity on a social mission. Instead, we will show how such a mission-centric conception of social entrepreneurship, when put into practice, is prone to enhance rather (...) than diminish societal grievances. In order to give social entrepreneurship an explicit and sound ethical grounding, we draw on integrative economic ethics as a frame of reference. From this perspective, social entrepreneurship necessitates adherence to the discourse-ethically reasoned moral principle in order to live up to its inherent normative validity claim of good entrepreneurship. The consideration of social entrepreneurship practices is crucial to make this approach less vulnerable to ethical critique. The addition of a practice dimension overcomes the mission-centric view of social entrepreneurship and opens up a typology of enterprise forms, thereby enabling a more fine-grained distinction between social enterprises and other forms of organization. (shrink)

Smith defines the business enterprise primarily as the endeavor of an individual who remains fully embedded in the broader society and subject to its moral demands. For him, the conceptions of the local community and its normative framework, of the enterprise, and of the individuals within it need to be aligned with each other and developed together. Over time, four processes have, however, led to a widening gap between the business world and the local community. These are the dissemination of (...) the corporate model, the transformation of the entrepreneurial role toward an agency role, changes in the ownership structure, and changes in the relation to the local community. This article presents Smith’s integrative conception of business and its contributions to the development of integrative theories of organizations and of business–society relations in the twenty-first century. Among others, it discusses the necessity to develop a normative-relational dimension of organizations that addresses the relations between the organization, its members, and the normative framework of the local community. This integrative approach of business–society relations challenges current business ethics research which often suggests that solutions to the current scandals lie either within the framework, the organization, or the individuals. (shrink)

Given a huge variety of international relations in the age of globalization, business ethics needs to take them seriously in a differentiated way with great sensitivity and sophisticated understanding. This essay proposes to structure the field of business ethics by distinguishing three levels of analysis and four types of international relations. It builds on Richard T. De George’s pioneering work as an early leader in the field of business ethics. It is hoped that such differentiation may help to better identify (...) the ethical responsibilities of all actors in business and the economy. The first part explains the extended three-level conception of business ethics with four types of international relations. The second part shows De George’s contribution to substantiate this conceptual framework. And the third part discusses the significance of this framework for better ways of securing human rights in international relations. (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: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)

While organizational learning literature has generated significant insight into the effective and efficient achievement of organizational goals as well as to the modus of learning, it is currently unable to describe moral learning processes in organizations consistently. Corporations need to learn morally if they want to deal effectively with stakeholders criticizing their conduct. Nongovernmental organizations do not ask corporations to be more effective or efficient in what they do, but to become more responsible or to learn morally. Current research on (...) the moral aspect of organizational learning has been primarily of a theoretical nature and is in need of empirical verification. Results of a longitudinal case study as Citigroup’s conflict with the Rainforest Action Network show that current organizational moral learning theories do not fit the moral learning path observed at Citigroup. More empirical research is needed to describe organizational moral learning. (shrink)

This conceptual paper analyses the arguments which have been made in favour of a transition towards humanistic management. In order to reconcile economic as well as moral arguments an integrative model of humanistic management is presented. This model outlines prospective lines of empirical research especially in the area where business conduct is profitable but not humanistic.

Most studies of corporate social responsibility have focused on the organisational level, while the individual level of analysis has been treated as a ‘black box’ when researching antecedents of CSR engagement or disengagement. This article offers insights into a small and medium-sized enterprise that is recognised as a pioneer in CSR. Although the extant literature suggests that the owner-manager is crucial in the implementation of CSR, this study reveals that employees drive CSR. The employees in the focal firm voluntarily joined (...) forces based on their shared perception of moral responsibility for CSR and they developed strict targets to be achieved by 2030. Despite their strong ethical and moral perspective when enacting CSR, they disengaged from their moral responsibility for CSR in various contexts. This paper contributes to the theory of moral decoupling by uncovering a novel context of disengagement—‘visionary procrastination’. Visionary procrastination is suggested to be a particularly relevant context of disengagement when individuals perceive moral responsibility for CSR. Moreover, by delivering insights into the antecedents of employee-initiated CSR on the organisational level, this study adds to the growing body of literature on the micro-foundations of CSR. (shrink)

In recent years, a considerable amount of research on adapted business for developing countries focused on the impact such endeavours have on the respective companies as well as on the affected people. However, the main emphasis within management sciences was on the economic outcomes or (even more distinct and often) on the question of how to integrate the poor into business models and value chains. Until now, further aspects of a dignified human existence were merely covered as a side note. (...) The article focuses on the influence of inclusive business approaches on various aspects of human dignity and provides explorative insights as a basis for future theory building. The aim is to uncover how human dignity is affected by different business approaches for the poor including and beyond economic outcomes. After giving an insight into the essence and meaning of human dignity in connection to various human rights, the articles refers to a number of illustrative cases of inclusive business. The analysis culminates in the insight that dignity can be (and sometimes already is) assured and promoted by deliberately including the poor into relevant value-added business processes. If this is the case, an enhanced dignity is not merely the result of increased incomes but stems from a variety of effects. However, such positive effects are not an inevitable outcome of any inclusive business initiative. (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)

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

When I think of the single change that would most successfully transform our teaching practice and leverage truly significant benefits, it would be to bring much more of what learners already know into the classroom so that it can be shared, examined, refined and improved. At present, it would seem that the majority mode of teaching in the areas of ethics and social responsibility does a rather poor job of this, tending instead towards silencing the wisdom that is in the (...) room in order that external perspectives can be more easily “instilled”. From many years of experimenting with a wide variety of approaches to teaching the subject, I find this to be deeply suboptimal and would seriously suggest that we ought to shift our practices in ways that make learners’ perspectives our primary material of interest. (shrink)

Providing access to medicines and health care is one of the most challenging issues facing society today. In this paper the author highlights some of the complexities of the health value chain as well as the problems that the world’s poor have in terms of access to medical care and medicines. He then attempts to delineate the roles and responsibilities of all stakeholders in order to define the specific corporate responsibilities of pharmaceutical companies in the context of the entire responsibility (...) system—the strength of which is determined by its weakest link. Finally, he looks forward to a transformational change being wrought for pro-poor health development by forging new coalitions that cut across both the health and traditional development stakeholders. (shrink)

In political philosophy, citizenship is a key concept. Citizenship is tied to rights and duties, as well as to concepts of social justice. Recently, the debate on citizenship has developed a new direction in focusing on qualified notions of citizenship. In this contribution, I shall defend three claims. Firstly, consumer citizenship fits into the discussion of qualified notions of citizenship. Secondly, the debate on qualified notions of citizenship cannot be detached from the normative claims in the philosophy of citizenship more (...) generally. In particular, duties and rights receive a distinct shape when debated in terms of “consumer citizenship”. Thirdly, I shall argue that further normative limits can be established by discussing qualified notions of citizenship as items of a list that need to cohere in normative terms. I shall pay particular attention to environmental citizenship. (shrink)

The increasing strategic importance of environmental, social and ethical issues as well as related performance measures has spurred interest in corporate sustainability performance measurement and management systems. This paper focuses on the balanced scorecard, a performance measurement and management system aiming at balancing financial and non-financial as well as short and long-term measures. Modifications to the original BSC which explicitly consider environmental, social or ethical issues are often referred to as sustainability balanced scorecards. There is much scholarly discussion about SBSC (...) architecture and how it can be designed to relate performance dimensions, strategic objectives and the logical links among these elements. To synthesise the widely scattered research findings and publications on the SBSC, we conducted a thematic analysis based on a systematic literature review containing 69 relevant articles spanning a period of two decades. We found that sustainability-oriented modifications of the BSC architecture are motivated by instrumental, social/political or normative theoretical perspectives. Moreover, these modifications can be mapped with a typology of generic SBSC architectures. The first dimension of the typology describes the hierarchy between performance perspectives and strategic objectives and how it is related to the organisational value system. The second dimension describes how sustainability-related strategic objectives are integrated into SBSC performance perspectives and how this is related to corporate sustainability strategy. This study contributes to the development of the emerging SBSC literature and practice and, more generally, to research on corporate sustainability performance measurement and management. We conclude with a research agenda and implications for management. (shrink)

In recent years, a considerable amount of research on adapted business for developing countries focused on the impact such endeavours have on the respective companies as well as on the affected people. However, the main emphasis within management sciences was on the economic outcomes or (even more distinct and often) on the question of how to integrate the poor into business models and value chains. Until now, further aspects of a dignified human existence were merely covered as a side note. (...) The article focuses on the influence of inclusive business approaches on various aspects of human dignity and provides explorative insights as a basis for future theory building. The aim is to uncover how human dignity is affected by different business approaches for the poor including and beyond economic outcomes. After giving an insight into the essence and meaning of human dignity in connection to various human rights, the articles refers to a number of illustrative cases of inclusive business. The analysis culminates in the insight that dignity can be (and sometimes already is) assured and promoted by deliberately including the poor into relevant value‐added business processes. If this is the case, an enhanced dignity is not merely the result of increased incomes but stems from a variety of effects. However, such positive effects are not an inevitable outcome of any inclusive business initiative. (shrink)

This article offers a first step toward a multi-level theory linking social movements to corporate social initiatives. In particular, building on the premise that social movements reflect ideologies that direct behavior inside and outside organizations, this essay identifies mechanisms by which social movements induce firms to engage with social issues. First, social movements are able to influence the expectations that key stakeholders have about firms’ social responsibility, making corporate social initiatives more attractive. Second, through conflict or collaboration, they shape firms’ (...) reputation and legitimacy. And third, social movements’ ideologies manifest inside the corporations by triggering organizational members’ values and affecting managerial cognition. The essay contributes to the literatures on social movements and CSR, extends the understanding of how ideologies are manifested in movement-business interactions, and generates rich opportunities for future research. (shrink)

Public pressure is essential for providing multinational enterprises (MNEs) with motivation to follow the standards of human rights conduct set in soft-law instruments, such as the United Nations Guiding Principles on Business and Human Rights. But how does the public judge MNE involvement in human rights violations? We empirically answer this question drawing on an original survey of American adults. We asked respondents to judge over 12,000 randomly generated scenarios in which MNEs may be considered to have been involved in (...) human rights violations. Our findings reveal substantial gaps between public judgments and the standards set in soft law and the normative literature. We identify the attributes of episodes of human rights violations involving MNEs that influence public judgments, including the relationship between the MNE and the perpetrator, the practice of due diligence, and the type of abuse. These results provide insights as to when we might expect public pressure to drive MNE compliance with soft-law instruments, and they direct attention to specific standards that will likely require stronger, ‘hard’ law approaches or broader efforts to shift the public’s view. (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)