Stakeholder theory has been an incredibly powerful tool for understanding and improving organisations, and their relationship with other actors in society. That these critical ideas are now accepted within mainstream business is due in no small part to the influence of stakeholder theory. However, improvements to stakeholder engagement through stakeholder theory have tended to help stakeholders who are already somewhat powerful within organisational settings, while those who are less powerful continue to be marginalised and routinely ignored. In this paper, we (...) argue that one possible obstacle preventing less powerful stakeholders from speaking up and/or being heard by organisations is found at the ontological level, where we have identified an ‘essentialist self’ underpinning the stakeholder concept. By deconstructing the stakeholder concept through how it is defined, discussed and debated, and linking this back to the practical consequences of the theory for the least powerful stakeholders, we are able to make three contributions. One, through our deconstruction, it is clear that at an ontological level, stakeholder theory is underpinned by an implicit, and problematic, assumption of the ‘essentialist self’, where the organisation is treated as the ‘natural, universal self’, and anyone not closely resembling this narrow (and unrealistic) view of self is treated as ‘other’. Two, we build on the work of authors such as Wicks et al. (Bus Ethics Q 4(4):475–497, 1994), who highlight the need for consideration of the self within stakeholder theory. We thus take our findings from contribution one and begin to build a more holistic view of the self within the stakeholder concept, where each self is encouraged to recognise common selves outside and inside the corporation. Third, we link the theoretical discussion to the practical by discussing some imperfect ways in which a more holistic, enriched stakeholder concept might begin to help mitigate marginalisation for some stakeholders. (shrink)

ABSTRACT:Globalization has brought increased attention to the notion that labor rights such asfreedom of association—the right of workers to organize a union—are fundamental human rights. However, the vigorous opposition to freedom of association by US firms is largely ignored in the business ethics literature and exacerbated by compensatory corporate citizenship rating mechanisms that tend to mask labor rights deficiencies. I argue that because freedom of association is a hypernorm, instrumental to fully realizing basic human rights, labor rights and human rights (...) are largely inseparable. Thus, respect for labor rights is a non-substitutable requisite of corporate citizenship. I conclude by providing examples of corporate labor relations strategies that respect freedom of association and business firms that are leading the way. (shrink)

Human resource management (HRM) education has tended to focus on specific functions and tasks within organizations, such as compensation, staffing, and evaluation. This task orientation within HRM education fails to account for the bigger questions facing human resource management and employment relationships, questions which address the roles and responsibilities of the HR function and HR practitioners. An educational focus on HRM that does not explicitly address larger ethical questions fails to equip students to address stakeholder concerns about how employees are (...) treated or the ethical dilemmas facing employers with regard to the employment relationship, and ironically makes the HRM function less strategic to the organization. In this paper, we identify some of the key ethical issues within the employment relationship, discuss how extant HRM education often fails to address these issues or help students to become aware of them, and offer a framework for integrating ethics into HRM education. (shrink)

Human capital, the knowledge, skills, and abilities of employees, can be a powerful driver of firm performance, yet the mobility of human capital raises questions over how to protect it. Employee non-compete agreements, which limit an employee’s ability to start or join a rival firm, have received recent attention. While past research considers whether non-competes are effective tools at limiting employee mobility, few have considered if non-competes should be used. Filling this gap, I propose a normative schema for when employee (...) non-competes can be considered ethical. A review of the limited existing literature on the ethics of employee non-competes finds that prior research has mostly focused on questions of property rights, which I propose as being nested within other ethical constructs. Analysis of two real-world illustrative examples of employee non-competes leads to a three-prong approach to evaluating non-competes based on ethical dimensions of power, autonomy, and fairness. I end by proposing—although further research is warranted—a measure of employee-level absorptive capacity, which is closely coupled with an employee’s pre-employment human capital, as an employee-level attribute independent of, although likely coincidental with, the tripartite requirements of power/autonomy/fairness for ethical employee non-compete agreements. (shrink)

Nine codes of ethics from companies in the Swedish financial sector were subjected to a content analysis to determine how they address and treat employees. The codes say a great deal about employee conduct and misconduct but next to nothing about employee rights, their rightful expectations or their value to the firm. The normative analysis – echoing some of the value-based HRM literature – draws on the foundational values of respect, equality, reciprocity and care. The analysis shows that most of (...) the codes are in conflict with these values. Such a treatment is then in conflict with fairness and risks harming the employees. Some of the features that make these codes ethically problematic are typical of how corporate codes have been described in previous code studies. Consequently, the normative analysis reaches beyond the scope of this material and in the end, what is at stake, is a very typical code design. (shrink)

Trust is a fundamental aspect of the moral treatment of stakeholders within the organization-stakeholder relationship. Stakeholders trust the organization to return benefit or protections from harm commensurate with their contributions or stakes. However, in many situations, the firm holds greater power than the stakeholder and therefore cannot necessarily be trusted to return the aforementioned duty to the stakeholder. Stakeholders must therefore rely on the trustworthiness of the organization to fulfill obligations in accordance to Phillips' principle of fairness (Business Ethics Quarterly (...) 7(1), 1997, 51-66), particularly where low-power stakeholders may not be fully consenting (Van Buren III, Business Ethics Quarterly 11(3), 2001, 481-499). The construct of organizational trustworthiness developed herewith is presented as a possible solution to the problem of unfairness in organizationstakeholder relations. While organizational trustworthiness does not create an ethical obligation where none existed before, stakeholders who lack power wiU likely be treated fairly when organizational trustworthiness is present. (shrink)

Given the growing interest in religion and spirituality in the community and workplace, we consider what light one of the oldest sources of human ethics, the Torah, can throw on the vexing issues of contemporary employment ethics and social sustainability. We specifically consider the Torah because it is the primary document of Judaism, the source of all the basic Biblical commandments, and a framework of ethics. A distinctive feature of Jewish ethics is its interpretive approach to moral philosophy: that is, (...) immersion and sense making in a dense, lived-in, complicated moral world, which is particularly useful with regard to ethical analyses of the workplace. Rather than discover or create a new ethic for the employer–employee relationship, we seek to harness general principles and norms from the Torah to contemporary business conditions. In the spirit of sustainability, rather than plunder the new, we recreate from existing resources. Interpretations from the Torah provide a rich source of moral and practical guidance for contemporary business ethics while also responding to academic and popular interest in spirituality and business. These tenets, however, have not to date been specifically directed at current predicaments in employment. We redress this by deriving principles from the Torah and applying them to ethical issues in contemporary employment practices. Practical guidance for both research in and practice of employment ethics is also provided. (shrink)

This conceptual paper revisits the concept of equality as a base of distributive justice and contends that it is underspecified, both theoretically and in terms of its ethical and pragmatic application to human resource management (HRM) within organizations. Prior organizational literature focuses primarily upon distributive equality of remunerative outcomes within small groups and implicitly employs an equity-based conception of inputs to define equality. In contrast, through exposition of the philosophical roots of equality principles, we reconceptualize inputs as de facto equal (...) and consider the systemic application of distributive equality in the form of status leveling practices. Ethical ramifications of distributive equality so viewed are explored. We conclude by arguing that, to implicitly insert a stronger ethics focus into the study and practice of HRM, perhaps there should be "equality theory" competing with equity theory for recognition in managerial and scholarly discourse. (shrink)

Improving working conditions at the bottom of global value chains has become a central issue in our global economy. In this battle, trade unionism has been presented as a way for workers to make their voices heard. Therefore, it is strongly promoted by most social standards. However, establishing a well-functioning trade union is not as obvious as it may seem. Using a comparative case study approach, we examine impediments to farm-level unionism in the cut flower industry in Ethiopia. For this (...) purpose, we propose an integrated framework combining two lenses, namely a vertical one and a horizontal one. We identify 10 impediments that point to three major dimensions contributing to unionisation. These three dimensions include awareness of and interest from workers, legitimacy of trade unions, and capacity of trade unions to act. Furthermore, our results suggest that private social standards may, in certain cases, be counterproductive for the efficient functioning of trade unions. Although we argue that there is no ‘quick fix’ solution to weak workplace unionism at the bottom of global value chains, we stress the importance of considering the dynamics of, and interactions between, the impediments when designing potential support measures that mitigate negative impacts. (shrink)

Codes of conduct are the main tools to privately regulate worker rights in global value chains. Scholars have shown that while codes may improve outcome standards (such as occupational health and safety), they have had limited impact on process rights (such as freedom of association and collective bargaining). Scholars have, though, only provided vague or general explanations for this empirical finding. We address this shortcoming by providing a holistic and detailed explanation, and argue that codes, in their current form, have (...) limited impact on trade union rights due to (i) buyers paying lip service to trade union rights, (ii) workers being treated as passive objects of regulation in codes of conduct, (iii) auditing being unable to detect and remediate violations of trade union rights, (iv) codes emphasizing parallel means of organizing, (v) suppliers having limited incentives for compliance, and (vi) codes being unable to open up space for union organizing when leveraged in grassroots struggles. Our arguments suggest that there is no quick fix for codes’ limited impact on trade union rights, and that codes, in their current form, have limited potential to improve trade union rights. We conclude by discussing ways in which codes of conduct, and private regulation of worker rights more generally, could be transformed to more effectively address trade union rights. (shrink)

To address substandard working conditions in global value chains, companies have adopted private regulatory systems governing worker rights. Scholars agree that without onsite factory audits, this private regulation has limited impact at the point of production. Companies, however, audit only a subset of their suppliers, severely restricting their private regulatory attempts. Despite the significance of the placement of suppliers inside or outside firms’ “responsibility boundaries” and despite scholars’ having called for more research into how firms prioritize what suppliers to audit, (...) few, if any, systematic studies have examined the topic. This is problematic, as the placement of firms’ responsibility boundaries determines what suppliers and workers are included in firms’ private regulatory attempts. Based on a study of 12 Swedish firms and the theory of moral disengagement, this paper starts to fill this research gap by exploring how firms’ responsibility boundaries are placed. The paper illustrates how firms’ responsibility boundary placement is best described as a patchwork with firms defining and delimiting their responsibilities differently. The paper also demonstrates that three supplier types are particularly likely to be placed inside firms’ responsibility boundaries, while a fourth type is likely be placed outside. (shrink)

ABSTRACT:Globalization has brought increased attention to the notion that labor rights such asfreedom of association—the right of workers to organize a union—are fundamental human rights. However, the vigorous opposition to freedom of association by US firms is largely ignored in the business ethics literature and exacerbated by compensatory corporate citizenship rating mechanisms that tend to mask labor rights deficiencies. I argue that because freedom of association is a hypernorm, instrumental to fully realizing basic human rights, labor rights and human rights (...) are largely inseparable. Thus, respect for labor rights is a non-substitutable requisite of corporate citizenship. I conclude by providing examples of corporate labor relations strategies that respect freedom of association and business firms that are leading the way. (shrink)