The aim of this article is to briefly spell out why corporate moral agency is a fallacy and to show how this conclusion should shift the field of business ethics more in the direction of political philosophy and the rule of law. An argument based on a false assumption can be valid, but it cannot be sound. If corporate moral agency is a fallacy, and thus also moral prescriptions for corporations, how do we salvage the field of business ethics? To (...) the extent that business ethics is about corporate behaviour (rather than individual managerial behaviour), the field can shift its foundational paradigm from ethics (which requires the attributes of moral agency) to legal accountability (which can be imposed instrumentally on corporate legal agents). By letting our elected representatives legislate the norms of acceptable corporate behaviour we can hold corporate legal entities legally accountable. What these norms should be then becomes the central focus of business ethics seen through the lens of political philosophy. (shrink)

We reflect on the nature of corporate codes of conduct is this article. Based on John Austin’s speech act theory, four characteristics of a performative concept of corporate codes will be introduced: 1) the existential self-performative of the firm identity, 2) which is demanded by and responsive to their stakeholders; 3) Because corporate codes are structurally threatened by the possibility of failure, 4) embracing the code not only consists in actual corporate responsible behaviour in light of the code, but in (...) the incessant recapturing of the code in the struggle of firms against the possible incongruence between their ethical principles and their actual responsible behaviour. A performative concept of corporate codes helps to bridge classical dichotomies like individualist versus collectivist approaches of moral agency and restrictive versus empowering ethics, and opens a new perspective on the interaction between individual ethical behaviour and the corporate institutionalisation of codes. (shrink)

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 impliesthat 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)

The paper argues that an ethical firm has cause to realize and to respect, in good faith, the decision of workers regarding labor unions, and proceeds along the following lines. First, the employer is due appropriate deference the bounds of which should be determined in conjunction with employees, as they are the most closely affected party. Second, employee preferences for defining the employment relation and appropriate deference are best reflected through autonomous voice. Third, autonomous voice is assured by the right (...) to free association and generally achieved through labor unions. Fourth, because employment is so important to a dignified existence, an economically just system of employment requires respect for workers’ choice regarding labor unions. And fifth, there are concerns and contradictions that arise from labor union operations, but they do not justify impeding a morally valid prerogative. (shrink)

Corporate/collective moral responsibility is a thorny topic in business ethics and this paper argues that this is due a number of unacknowledged and connected epistemic issues. Firstly, CSR, Corporate Citizenship and many other research streams that are based on the assumption of collective and/or corporate moral responsibility are not compatible with Kantian ethics, consequentialism, or virtue ethics because corporate/collective responsibility violates the axioms and central hypotheses of these research programmes. Secondly, in the absence of a sound theoretical moral philosophical foundation, (...) business ethicists have based their ideas on legal and political epistemologies, yet still claim to be ethics-based. Thirdly, research is often driven by an intention to prove that a specific social goal is right, not by open and critical inquiry. Finally, today, corporate/collective moral responsibility is widely accepted as the Truth as most researchers are unaware of any issues because they are untrained in philosophy. The paper identifies the confusion about the epistemic basis as a major impediment for delivering a thick concept of the role of corporations as moral agents. Thus, the paper does not argue against corporate or collective agency as such, but points out an obvious but forgotten paradox: corporate and collective personhood cannot, at the moment at least, be epistemologically grounded in the field in which business ethics claims to operate: moral philosophy. (shrink)

In his 2007 Ethics article, “Responsibility Incorporated,” Philip Pettit argued that corporations qualify as morally responsible agents because they possess autonomy, normative judgment, and the capacity for self-control. Although there is ongoing debate over whether corporations have these capacities, both proponents and opponents of corporate moral agency appear to agree that Pettit correctly identified the requirements for moral agency. In this article, I do not take issue with either the claim that autonomy, normative judgment, and self-control are the requirements for (...) moral agency or the claim that corporations possess them. I claim that if both of these claims are correct, then corporate moral agency entails that, in a liberal democracy, corporations should have the right to vote. I show that under the conception of democracy supported by most liberal political theorists, all parties subject to the law are entitled to the right to vote, and all parties that possess autonomy, normative judgment, and self-control are subject to the law. Therefore, if the proponents of corporate moral agency are correct, then corporations satisfy the requirements for the right to vote. I then consider potential objections to this argument. I show that the strongest objection to the corporate right to vote is undermined by Pettit’s own argument for corporate autonomy. I then show that objections derived from other arguments for limiting the rights of corporations are equally unavailing. I conclude with some observations about the implications of my argument for the question of corporate speech rights. (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)

Integrating "ethics all the way through" an organization suggests that the issue of moral agency and the corporation be reconsidered. Is the corporation a moral agent in some sense or is it no more than the people who are a part of the organization? Views which stress the role of the individual lose sight of the whole corporate entity, and views which think of the corporation as a collective lose sight of the individual. A view which rejects both these alternatives (...) sees the corporation as a type of community where there is a dynamic tension between the corporation as a whole and the individuals who are part of the organization. This view has implications relative to the focus of efforts to integrate ethics throughout an organization. (shrink)

Recently, a number of people have argued that certain entities embodied by groups of agents themselves qualify as agents, with their own beliefs, desires, and intentions; even, some claim, as moral agents. However, others have independently argued that fully-fledged moral agency involves a capacity for reactive attitudes such as guilt and indignation, and these capacities might seem beyond the ken of “collective” or “ corporate ” agents. Individuals embodying such agents can of course be ashamed, proud, or indignant about what (...) the agent has done. But just as an entity needs to have its own beliefs, desires, and intentions to qualify as a bona fide agent, the required capacity for reactive attitudes is a capacity to have one’s own reactive attitudes. If fully-fledged moral agency requires reactive attitudes, the corporate agent must itself be capable of guilt and indignation. In this paper, we argue that at least certain corporate agents are. Or, more precisely, we argue that if there are bona fide corporate agents, these agents can have the capacities that are both associated with guilt and indignation and plausibly required for moral agency; in particular certain epistemic and motivational capacities. (shrink)

In this paper, I argue for the ethics of business based on the way that business activity may embody a vocation to partake in “the Good.” Following a Platonist framework for ethics and recent work on vocations by Robert M. Adams, I argue that understanding the ethics of vocations allows us to avoid the charges that business persons have to do something more for others—often couched in terms of social responsibility, sustainability, or consideration of stakeholders—in order to legitimize their careers (...) ethically. Rather, I claim, the ethics of a business vocation, as in any vocation, rests first and foremost in the way that a person pursues projects that answer an invitation to partake in the good things of this world. Thus, the promotion of the well-being of others, while ethically admirable and constitutive of some vocations, is not fundamental for understanding the ethics of vocations themselves, even in business. There are important implications for the ethics of markets, and I also consider a recent challenge to my approach that claims that true business vocations demand a more direct promotion of the well-being of others. (shrink)

The debate over corporate moral responsibility has become a fixture in business ethics research and teaching. Only rarely, however, does the sizable literature on that question consider whether the debate has important practical implications. This article examines that question from a corporate control perspective. After assuming corporate moral responsibility’s existence for purposes of argument, the article concludes that such responsibility makes a difference in cases where it is present but personal responsibility is absent. Then the article tries to identify the (...) forces that diminish personal responsibility when corporate responsibility exists. The most important such forces, it concludes, spring from the socialization processes people undergo when they enter groups. One example is the well-known phenomenon of groupthink, which can exculpate individuals by rendering them justifiably ignorant of foreseeable risks of harm. (shrink)

Despite some exceptions, the business ethics literature on the moral responsibility of corporations does not emphasize a subject critical to that inquiry: the general nature of corporations. This article attempts to lessen the imbalance by describing three conceptions of the corporation that have been prominent in twentieth century legal theorizing, and by sketching their implications for the moral responsibility of corporations. These three conceptions, at least two of which have counterparts in the philosophical and organizational theory literature, are the concession, (...) aggregate, and real entity theories. The article concludes that the real entity theory is the most plausible of the lot. At least under prevailing tests of moral responsibility, it then contends, corporations-as-real-entities are morally responsible for most of their members' actions. (shrink)

The United States is distinctive among advanced economies in that its employment laws and practices are governed byEmployment at Will (EAW). Most other nations have variations on Just Cause dismissal rules. I argue that the U.S. preference for EAW is unsupported by concerns about net social or economic consequences. More centrally, I argue that the basic moral commitments that underlie the U.S. system of private property and freedom of contract are commitments that lend support to Just Cause over EAW.

Abstract:During recent years, the principle and practice of employment-at-will have been under attack. While progress has been made in eroding the practice, the principle still governs the philosophical assumptions underlying employment practices in the United States, and, indeed, EAW has been promulgated as one of the ways to address economic ills in other countries. This paper will briefly review the major critiques of EAW. Given the failure of these arguments to erode the underpinnings of EAW, we shall suggest new avenues (...) for approaching employment issues to achieve the desirable goal of employee dignity and respect. (shrink)

This essay provides an overview of business ethics. I describe important issues, identify some of the normative considerations animating them, and offer a roadmap of references for those wishing to learn more. I focus on issues in normative business ethics, but discuss briefly the growing body of work in descriptive business ethics. I conclude with a comment on the changing nature of the field.

With the demise of Marxism and socialism, the United States is becoming a model not merely for free enterprise, but also for employment practices worldwide. I believe that free enterprise is the least worst economic system, given the alternatives, a position I shall assume, but not defend, here. However, I shall argue, a successful free enterprise political economy does not entail mimicking US employment practices. I find even today in 1998, as I shall outline in more detail, these practices, when (...) consistently carried out, by and large erode trust in the workplace, they are, on balance unfair to workers and managers, and, if Jeffrey Pfeffer is correct, they do not maximize long-term corporate earnings or growth. Getting clear on US employment practices and their weaknesses may help to shape other models for employment that neither contravene free enterprise nor are degrading to workers. (shrink)

There is a growing literature that attempts to define the substantive rights of employees in the workplace, a.k.a. the duties of employers toward their employees. Following Nozick, this article argues that — so long as there is a competitive labor market — to set up a class of moral rights in the workplace invades workers' rights to freely choose the terms and conditions of employment they judge best.

It is rather natural to suppose that what we mean when we say that an institutional organization has a moral duty is parallel to whatever it is that we mean when we say that an individual has a duty. I challenge this interpretation on the grounds that it assumes that institutional organizations possess those characteristics or abilities requisite for moral agency—an assumption which I argue is highly suspicious. Against such an interpretation, I argue that we have very good reasons to (...) suppose that the term 'has a duty' is used equivocally across individual and institutional contexts. In other words, the meaning of an institutional duty-claim is quite different than that of an individual duty-claim, so much so that we ought to recognize that institutional duty-claims are not really duty-claims at all. (shrink)

ABSTRACT:Despite sustained attention to ethical leadership in organizations, scholarship remains largely descriptive. This study employs an empirical approach to examine the consequences of ethical leadership on leader promotability. From a sample of ninety-six managers from two independent organizations, we found that ethical leaders were increasingly likely to be rated by their superior as exhibiting potential to reach senior leadership positions. However, leaders who displayed increased ethical leadership were no more likely to be viewed as promotable in the near-term compared to (...) those who displayed less ethical leadership. Our findings also show ethical culture and pressure to achieve results are important contextual factors that moderate the relationships between ethical leadership and leader promotability to senior leadership roles. (shrink)

Abstract:This article addresses the issue of whether and to what extent moral values can be attributed to collective actors. The paper starts from the premise that business ethics as the ethics of an organization is to be distinguished from the virtues of its members. This point is elaborated in both economic- and organization-theoretic terms within the framework of the New Economics of Organization. The result is the development of a concept of governance ethics. The ethics of governance is about the (...) incorporation of moral conditions and requirements in the management, governance, and control structures of a firm. This is the contextual precondition for the long-lasting and beneficial effects of the virtues of individuals within the organizations. (shrink)

An important question one can ask of ethical theories is whether and how they aim to raise claims to universality. This refers to the subject area that they intend to describe or govern and also to the question whether they claim to be binding for all (moral) agents. This paper discusses the question of universality of Luciano Floridi’s information ethics (IE). This is done by introducing the theory and discussing its conceptual foundations and applications. The emphasis will be placed on (...) the ontological grounding of IE. IE’s claims to universality will be contrasted with those raised by discourse ethics. This comparison of two pertinent ethical theories allows for a critical discussion of areas where IE currently has room for elaboration and development. (shrink)

This paper provides a historical overview of the interrelationship between the use of nonunion employment arbitration and the ethics of employee organizational due process. Key research questions to be explored include the following, among others: Why are expectations about due process in organizations increasing? How are these expectations being exhibited? What is the nature of fair treatment of employees in relation to nonunion employment arbitration? Should arbitration in the nonunion employment relationship be nurtured? A final objective of this paper is (...) to study some of the current initiatives that neutral agencies have adopted to ensure that nonunion arbitration is fair, just, and equitable for a firm's employees. (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)

Corporate Social Responsibility (CSR) has been traditionally framed within business ethics as a discourse attempting to identify certain moral responsibilities of corporations (as well as get these corporations to fulfill their responsibilities). This theory has often been normatively grounded in the idea that a corporation is (or ought to be treated as) a moral agent. I argue that it is a mistake to think of (or treat) corporations as moral agents, and that CSR’s impotency is a direct result of this (...) mistake. I then outline a distinction between business ethics and business politics, arguing that CSR might be better framed as a political goal – one which might be able to take better advantage of the resources of corporate governance and a renewed (albeit shifted) focus on agency theory. (shrink)

Is it a requirement of justice to democratize private companies? This question has received renewed attention in the wake of the financial crisis, as part of a larger debate about the role of companies in society. In this article, we discuss three principled arguments for workplace democracy and show that these arguments fail to establish that all workplaces ought to be democratized. We do, however, argue that republican-minded workers must have a fair opportunity to work in a democratic company. Under (...) current conditions, this means that a liberal order must actively promote workplace democracy. (shrink)

Moral responsibility for outcomes in corporate settings can be ascribed either to the individual members, the corporation, or both. In the latter case, the relationship between individual and corporate responsibility has been approached as inversely proportional, such that an increase in individual responsibility leads to a corresponding decrease in corporate responsibility and vice versa. In this article, we develop a non-proportionate approach, where, under specific conditions, individual and corporate moral responsibilities interact dynamically, leading to a mutual enhancement of responsibility: the (...) more the corporation is responsible, the more the individuals become responsible and vice versa. We develop this mutually enhancing approach in terms of normative ascriptions of responsibility, while leaving aside empirical implications in terms of mutual awareness of responsibility between individuals and corporations. We explore conceptually the conditions and mechanisms that generate this mutual enhancement and also discuss the implications for research and practice. (shrink)

ABSTRACTCurrent‐day management leaders such as Peter Drucker and Rosabeth Moss Kanter have cited Mary Parker Follett as guru and prophet given her foreknowledge of systems theory, action research and leadership. She viewed business as a social institution and work itself as a community service, concepts particularly relevant in the context of understanding social entrepreneurship. Referencing two of her works, “The Individual in Society” and “Business in Society”, this paper introduces Follett, defines social entrepreneurship and presents her ideas as timely insights (...) on the meaning of work, ethics and the role of business in society. (shrink)

Empirical analyses of the ethics of corporations with the aim to improve the state of corporate ethics are rare. This paper develops an integrated, normative model of corporate ethics by conceptualizing the ethical quality of organizations and by relating this contextual quality to various expressions of immoral behavior. This so-called Ethics Qualities Model for organizations, which contains 21 ethical qualities, allows one to assess the ethical content of institutional groups of individuals. A proper conceptualization is highly relevant both for the (...) empirical corroboration of business ethics theories and for managerial purposes, such as judging individual and group performance or informing external stakeholders. The empirical applicability of the model is illustrated by an explorative case study of a large, globally operating financial institution. This case-study demonstrates that the corporate ethical qualities differ with respect to their perceived optimality as well as to their estimated impact on (un)ethical conduct. The various results provide managers with many clues to understand their organization and to take effective measures to improve the ethical content of their organization. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

Dismissal is a major issue for distributive justice at work, because it normally has a drastic impact on an employee’s livelihood, self-esteem and future career. This article examines distributive justice under the US’s employment-at-will (EAW) system and New Zealand’s just-cause dismissal system, focusing on the three main categories of dismissal, namely misconduct, poor performance and redundancy. Under EAW, employees have limited protection from dismissal and remedies are restricted to just a few so-called exceptions. Comparatively, New Zealand’s just-cause system delivers much (...) more just outcomes, both in terms of remedies and punishments. Despite a few shortcomings, it should be considered as a reasonable reference for policy changes in the US. (shrink)

Growing public concern and uncertainties surrounding emerging technologies suggest the need for socially-responsible behavior of companies in the development and implementation of oversight systems for them. In this paper, we argue that corporate social responsibility (CSR) is an important aspect of nanotechnology oversight given the role of trust in shaping public attitudes about nanotechnology and the lack of data about the health and environmental risks of nanoproducts. We argue that CSR is strengthened by the adoption of stakeholder-driven models and attention (...) to moral principles in policies and programs. In this context, we examine drivers of CSR, contextual and leadership factors that influence CSR, and strategies for CSR. To illustrate these concepts, we discuss existing cases of CSR-like behavior in nanotechnology companies, and then provide examples of how companies producing nanomedicines can exhibit morally-driven CSR behavior. (shrink)

Should we conceive of corporations as entities to which moral responsibility can be attributed? This contribution presents what we will call a political account of corporate moral responsibility. We argue that in modern, liberal democratic societies, there is an underlying political need to attribute greater levels of moral responsibility to corporations. Corporate moral responsibility is essential to the maintenance of social coordination that both advances social welfare and protects citizens' moral entitlements. This political account posits a special capacity of self-governance (...) that corporations can intelligibly be said to possess. Corporations can be said to be "administrators of duty" in that they can voluntarily incorporate moral principles into their decision-making processes about how to conduct business. This account supplements and partly transforms earlier pragmatic accounts of corporate moral responsibility by disentangling responsibility from its conventional linkages with accountability, blame and punishment. It thereby represents a distinctive way to defend corporate moral responsibility and shows how Kantian thinking can be helpful in disentangling the problems surrounding the concept. (shrink)

While researchers in business ethics, moral philosophy, and jurisprudence have advanced the study of corporate agency, there have been very few attempts to bring together insights from these and other disciplines in the pages of the Journal of Business Ethics. By introducing to an audience of business ethics scholars the work of outstanding authors working outside the field, this interdisciplinary special issue addresses this lacuna. Its aim is to encourage the formulation of innovative arguments that reinvigorate the study of corporate (...) agency and stimulate further cross-fertilization of ideas between business ethics, law, philosophy, and other disciplines. (shrink)

There seem to be good reasons that democratic institutions must be reformed in order to minimize the danger of unsustainable policy decisions infringing upon duties of intergenerational justice. This is why there exist a number of different proposals of how to reform democratic states in order to foster their duties towards the future. However, the debate lacks a systematic assessment of these suggested reforms within a coherent theoretical and norma-tive framework. This paper aims at developing such a framework. We suggest (...) two conceptual dimensions defining the spectrum of different justi-fiable institutional reforms: the relation between democracy and justice as one dimension and the conditions considered relevant for viewing democracies as responsible collective agents as the other. Depending on how we understand this relation and these conditions, it is possible to substantiate a set of types of institutional reforms that will promote democracies’ capacities to comply with their responsibilities towards the future. (shrink)

Contract-based approaches have been a focus of attention in business ethics. As one of the grand traditions in political philosophy, contractarianism is founded on the notion that we will never resolve deep moral disagreement. Classical philosophers like Hobbes and Locke, or recent ones like Rawls and Gaus, seek to solve ethical conflicts on the level of social rules and procedures. Recent authors in business ethics have sought to utilize contract-based approaches for their field and to apply it to concrete business (...) dilemmas. However, the application of contractarianism to management contexts can cause difficulties. Our article discusses this conceptual problem of contractarian business ethics and presents the idea of order ethics as an alternative. Order ethics, as we argue, can make a difference by conceptually bridging the gap between contractarianism and business ethics. (shrink)

Corporate social responsibility (CSR) has become an increasingly significant managerial concept, yet the manager as an agent of corporate bureaucracy has been substantially missing from both the analytical and conceptual literature dealing with CSR. This article, which is both interpretative in nature and specific in reference to the U.K. cultural context, represents an attempt at addressing this lacuna by utilising qualitative data to explore the perceptions of managers working in corporations with developed CSR programmes. Exploring managerial perceptions of motives for (...) CSR initiatives, methods of stakeholder engagement, organisational integration of CSR and its impact on managerial work, this study concludes that an instrumental approach dominates, which indicates an external-internal organisational paradox in the design and execution of CSR initiatives. (shrink)

Recalling several profound disagreements about business ethics as it is currently discussed in Western societies, I emphasize the need for business ethics as an academic discipline that constitutes the “backbone” for both teaching business ethics and improving business practice (section 1). Then I outline a conceptual framework of business ethics that promotes a “bottom-up” approach (section 2). This “problem-and action-oriented” conception appears to be fruitful in terms of both practical relevance and theoretical understanding. Finally, I argue for (section 3) the (...) relevance of discussing goals at all levels of human action (i.e., individuals, organizations, systems) as well as the indispensability of human rights, and propose Amartya Sen's “goal-rights-system” approach as a normative-ethical framework for business ethics that integrates these two fundamental aspects. (shrink)

Stakeholder theory, as a method of management based on morals and behavior, must be grounded by a theory of ethics. However, traditional ethics of justice and rights cannot completely ground the theory. Following and expanding on the work of Wicks, Gilbert, and Freeman (1994), we believe that feminist ethics, invoking principles of caring, provides the missing element that allows moral theory to ground the stakeholder approach to management. Examples are given to support the suggested general principle for making business decisions (...) under feminist moral theory. (shrink)

This article surveys arguments for the claim that employees have a right to strong forms of decision-making participation. Itconsiders objections to employee participation based on shareholders' property rights and it claims that those objections are flawed. In particular, it argues the employee participation rights are grounded on the same values as are property rights. The articlesuggests that the conflict between these two competing rights claims is best resolved by limiting the scope of corporate property rightsand by recognizing a strong employee (...) right to co-determine corporate decisions. (shrink)

Much recent work in applied legal and political theory has been preoccupied with the problem of the moral status of business organizations and corporations, and of the nature of their agency and personality. On the one hand, moral rights, such as rights to freedom and autonomy, are paradigmatically ascribed to natural, human persons; moral responsibility analogously seems therefore paradigmatically applicable to individuals. Organizations seemingly have no will or mind, no human feelings such as pleasure, pain, shame, and remorse. How can (...) the language of rights and responsibility be applicable to them? On the other hand, it seems to be a fact that business organizations often do things that we human beings do—make deals, sign contracts, cause harm, and issue apologies. In ordinary and in legal discourse all the time we hear such things as, “Miller's Pulp Mill is responsible for its corrupt environmental practice”; “Philip Cosmetics Ltd. has the right to advertise its products”; and “Sunligt Co. is accountable for its irresponsible behavior.” How then are we to understand the attributions of organizational agency, personality, and responsibility that these statements presuppose? Are the predicates in these statements to be taken as having the same intension, or the same force, as similar ones predicated on natural persons? Or are the predications to be seen as extensions of meaning, justified or not? Or as exotic metaphors with no factual implications? (shrink)

Taking the lead from Susan Wolf's and Linda Emanuel's work on systems thinking, and developing ideas from Moberg's, Seabright's and my work on mental models and moral imagination, in this paper I shall argue that what is often missing in management decision-making is a systems approach. Systems thinking requires conceiving of management dilemmas as arising from within a system with interdependent elements, subsystems, and networks of relationships and patterns of interaction. Taking a systems approach and coupling it with moral imagination, (...) now engaged on the organizational and systemic as well as individual levels of decision-making, I shall conclude, is a methodology that encourages managers and companies to think more imaginatively and to engage in integrating moral decision-making into ordinary business decisions. More importantly this sort of thinking is a means to circumvent what often appear to be intractable problems created by systemic constraints for which no individual appears to be responsible. (shrink)

Shareholders of corporations have their liability for actions of the corporation limited by law. Unlike the equity holder in a partnership or proprietorship, the assets that a shareholder has distinct from her holdings in the enterprise can not be taken to satisfy liabilities arising from actions of the enterprise itself. This paper argues that a reasonable principle of fairness argues for an alternative to limited liability, proportional liability. Proportional liability makes a shareholder liable for the same proportion of a corporation''s (...) excess of liabilities over assets that her number of shares bears to the total number of shares outstanding. The key idea is that it is unfair in situations in which explicit agreements can not be reached for shareholders to bear only limited risk when they may receive gains from stock dividends and appreciation that are not limited to any pre-determined amount. Proportional liability has not been much examined in the financial literature. Good utilitarian arguments have been given for limited liability over unlimited liability for corporate shareholders, but these arguments do not clearly support the choice of limited liability over proportional liability. (shrink)

This article summarizes the development of the stakeholder concept in the last decade. The academic debate has been dominated over the last ten years by the managerial version of the stakeholder concept. The case of Shell in Ogoniland is elaborated to demonstrate that the managerial version does not pay sufficient respect to other interpretations of the concept. The article criticizes this dominant interpretation and argues for the need of an ongoing — academic and practical — debate on organizing and ethics. (...) An ongoing "organizational stakeholder debate" is required. Social and ethical accounting, auditing, and reporting can be seen as one way to operationalize this notion of the "organizational debate", if it addresses the creation and diversity of moral meaning in the context of organizations. (shrink)

Moral repair is an important way for firms to heal moral relationships with stakeholders following a transgression. The concept is rooted in recognition theory, which is often used to develop normative perspectives and prescriptions, but the same theory has also propelled a view of moral repair as premised on negotiation between offender and victim(s), which involves the complex social construction of the transgression and the appropriate amends. The tension between normative principles and socioconstructivist implementation begs the question how offending firms (...) should approach moral repair. Addressing this question, we develop a two-level conceptualization of moral repair, distinguishing between procedural and substantive levels of practice, which accommodate normativity and socioconstructivism, respectively. In so doing, we enrich the literature by 1) promoting conceptual clarity, 2) refining understanding of the moral repair process, and 3) suggesting the use of a unified, configurational approach to studying (nonlinear) relations between amends and moral outcomes. (shrink)