Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind. Adopting a sensemaking approach, we argue that ethical blindness results from a complex interplay between individual sensemaking activities and context factors.

During the last years, there has been an increasing discussion on the role of business in human rights violations and an increase in human rights litigation against companies. The result of human rights litigation has been rather disillusioning because no corporation has been found guilty and most cases have been dismissed. We argue that it may nevertheless be a useful instrument for the advancement of the business and human rights agenda. We examine the determinants of successful human rights litigation in (...) terms of judicial, educational, and regulatory effects. This article reviews more than 40 corporate foreign direct liability cases and their effects on corporate human rights policies and conduct. The review shows that most corporations adjusted their human rights policies and adopted additional measures to cope with human rights issues during or shortly after the legal proceedings. Opening legal channels for human rights litigation may be one way for governments to incentivize firms to respect human rights. These findings have implications for the United Nations Guiding Principles on Business and Human Rights as well as on our interpretation of the most recent U.S. Supreme Court decision in Kiobel v. Shell. (shrink)

Scholars of stakeholder management have long grappled with the question of how to communicate with stakeholders to enhance cooperation and reduce conflict. We build on insights from the literature on stakeholder dialog to highlight the importance of four elements of firm–stakeholder dialog processes: timing, valence, richness, and topicality of firms’ responses to stakeholder engagements. We demonstrate a link between these elements of the firm–stakeholder dialog process and changes in stakeholder cooperation or conflict with the firm, as well as contingent tradeoffs (...) among them. Specifically, we show that the relative importance of these elements is contingent upon stakeholder type and status. Government actors prioritize richness and topicality over timeliness and valence. Economic actors, by contrast, prioritize timeliness and valence. Civil society stakeholders prioritize timeliness, valence, and topicality over richness. Low-status actors across sectors deprioritize topicality and richness while high-status actors demand attentiveness to all four elements. (shrink)

This paper explores the role of NGOs in corporate social responsibility (CSR) through an analysis of various stakeholders’ perceptions and of NGOs’ self-perceptions. In the course of qualitative research based in Spain, we found that the perceptions of the role of NGOs fall into four categories: recognition of NGOs as drivers of CSR; concerns about their legitimacy; difficulties in the mutual understanding between NGOs and trade unions; the self-confidence of NGOs as important players in CSR. Each of these categories comprises (...) the various elements analysed in the paper. We found some discrepancies between the perception of others and the self-perceptions of NGOs, which explains why their role is often controversial. The research confirms that secondary stakeholders, such as NGOs, are key players in CSR, but their role is still regarded as controversial and their legitimacy contested. Deep-seated misunderstandings and mistrust among various stakeholder groups (particularly between NGOs and trade unions) are a possible hurdle to the integration of social and environmental concerns in business activity and corporate governance in Spain. The study finds that business managers need to take a less firm-centric and a more contextual approach, and look more closely into the relationship with and among stakeholder groups. For NGO managers, the research shows that NGOs are not always aware of the stereotypes they generate and the problems caused mainly by what is seen as ambivalent roles: critic and counsellor, accuser and judge, idealist and fund raiser. (shrink)

Sustainable development (SD) – that is, “Development that meets the needs of current generations without compromising the ability of future generations to meet their needs and aspirations” – can be pursued in many different ways. Stakeholder relations management (SRM) is one such way, through which corporations are confronted with economic, social, and environmental stakeholder claims. This paper lays the groundwork for an empirical analysis of the question of how far SD can be achieved through SRM. It describes the so-called SD–SRM (...) perspective as a distinctive research approach and shows how it relates to the wider body of stakeholder theory. Next, the concept of SD is operationalized for the microeconomic level with reference to important documents. Based on the ensuing SD framework, it is shown how SD and SRM relate to each other, and how the two concepts relate to other popular concepts such as Corporate Sustainability and Corporate Social Responsibility. The paper concludes that the significance of societal guiding models such as SD and of management approaches like CSR is strongly dependent on their footing in society. (shrink)

The combination of corporate-community conflicts and oil transnational corporations' (TNCs) rhetoric about being socially responsible has meant that the issue of community development and poverty reduction have recently moved from the periphery to the heart of strategic business thinking within the Nigerian oil industry. As a result, oil TNCs have increasingly responded to this challenge by adopting partnership strategies as a means to contribute to poverty reductions in their host communities as well as secure their social licence to operate. This (...) paper critically examines the strengths and weaknesses of the different community development partnership (CDPs) initiatives employed by Shell, Exxon Mobil and Total to contribute to poverty reduction within their host communities in the Niger Delta, Nigeria. Drawing on empirical data and critical analysis, the paper argues that while the CDP initiatives by SPDC, MPN and EPNL have the potential to contribute to community development, the failure to integrate negative injunction duties into existing partnerships means that the partnerships make no difference to how oil TNCs conduct their core business operation. Consequently, CDPs have had limited positive impact on poverty reduction in the Niger Delta. The paper concludes by examining the implications of the emerging issues for partnership and poverty reduction. (shrink)

This article analyses the ethics of how community engagement and dialogue as applied by a mining corporation in Chile led to erosion of the community’s psychological freedom despite being aligned with best practice. This article details how a mining company squeezed the psychological freedom of the community in order to obtain an agreement between the period of 2000 and 2016. The findings focus particularly on a 9-month period between 2015 and 2016 when the company undertook intense community engagement. The article (...) identifies six corporate action phases undertaken which curtailed the community’s psychological freedom as paying off local leaders; challenging via courts of law; co-opting community lawyers; prohibiting a key debate during dialogue; and remaining silent after failing to honour its own self-imposed rule. The findings label the company’s community engagement as contradictory; while it conducted transitional and transformational engagement in formal spaces, it also engaged in unethical strategies in the informal spaces of community engagement. The result was overall community consent and an even more fragmented community. This article finds that when it limits the psychological freedom of participants, who are already divided as a group, corporate–community engagement can be viewed as ethically problematic. Based on analysis of the literature and an empirical case analysis, this article contributes a test for assessing the ethics of CCE. (shrink)

This article tracks Corporate Social Responsibility (CSR) as an emergent organizational process that places the employee at its center. Predominantly, research on CSR tends to focus on external pressures and outcomes leading to a neglect of CSR as a dynamic and developing process that relies on the involvement of the employee as a major stakeholder in its co-creation and implementation. Utilizing case study data drawn from a study of a large multinational energy company, we explore how management relies on employees' (...) interaction with CSR as the process of initiation → implementation → maturation develops. Employee involvement grows from a minor element in the CSR initiation stage to a vital contributory factor in CSR's success in the later stages of the process. The article offers new insights into a processual and interactional approach to CSR that accounts for the actions of different actors involved at each stage. Most unusually, it also recognizes the dual impact this has on broader issues concerning the management and involvement of employees through CSR actions, and gaining legitimacy in the eyes of not only external stakeholders but internal too. (shrink)

Our goals in this article are to summarize the existing literature on the role business can play in creating sustainable peace and to discuss important avenues for extending this research. As part of our discussion, we review the ethical arguments and related research made to date, including the rationale and motivation for businesses to engage in conflict resolution and peace building, and discuss how scholars are extending research in this area. We also focus on specific ways companies can actively engage (...) in conflict reduction including promoting economic development, the rule of law, and principles of external valuation, contributing to a sense of community, and engaging in track-two diplomacy and conflict sensitive practices. We conclude by developing a set of future research questions and considerations. (shrink)

Based on a theoretical exploration in a previous article, this paper empirically analyzes which issues of SD are taken into account by corporations and stakeholders in what way, and to what extent the concept of sustainable development (SD) can be achieved through stakeholder relations management (SRM) on the corporate level. An important basis for this empirical analysis is a referential framework, which specifies 14 issues of SD. In a first empirical step, the literature-based framework has been operationalized for the business (...) world by analyzing sustainability reports. In a second empirical step, the operationalized framework served as the basis for a survey of selected MNCs. The analyses of the sustainability reports and the survey show how MNCs deal with particular issues of SD and what role they perceive particular stakeholders play. A key conclusion of the article is that SRM indeed promotes SD, but that it is no alternative to predictable government regulation. (shrink)

This article assesses the quality of Integrative Social Contracts Theory (ISCT) as a social contract argument. For this purpose, it embarks on a comparative analysis of the use of the social contract model as a theory of political authority and as a theory of social justice. Building on this comparison, it then develops four criteria for any future contractarian theory of business ethics (CBE). To apply the social contract model properly to the domain of business ethics, it should be: (1) (...) self-disciplined, i.e., not aspire results beyond what the contract model can realistically establish; (2) argumentative, i.e., it should seek to provide principles that are demonstrative results of the contractarian method; (3) task-directed, i.e., it should be clear what the social contract thought-experiment is intended to model; and (4) domain-specific, i.e., the contractarian choice situation should be tailored to the defining problems of business ethics. (shrink)

Integrating corporate social responsibility (CSR) into a for-profit organization’s business activities is fraught with tensions. This paper reports a case study of a construction company, exploring how different tensions emerged to challenge company-level aspirations for strategic CSR integration. The study identifies three types of persistent CSR tensions and four management practices, discussing how the management practices led the organization to navigate CSR tensions in both active and defensive ways. Furthermore, the study explicates why the case company succeeded in integrating CSR (...) into formal business strategy and shared attitudes but struggled with CSR integration in the domain of day-to-day operations. The paper contributes to the CSR literature by developing a tension-centric perspective on CSR development. It highlights the necessity of tension navigation at both the organizational and the action levels, the key role of active (as opposed to defensive) navigation of CSR tensions, and the importance of alignment between organizational and action levels in navigating tensions for sustaining strategic focus on CSR over time. (shrink)

In recent years, corporate social responsibility (CSR) of Multinational Corporations (MNCs) in developing countries has received more attention. However, in this literature, Africa is much less well represented than other regions, and existing studies about Africa have mainly focused on South Africa and Nigeria. This focus has resulted in scant research on other African countries where MNCs are located as well, and where their presence is notable. Settings largely unexplored include conflict-ridden areas in Central Africa where a limited number of (...) usually large MNCs can potentially have a large impact on the local situation and play a role in addressing the huge problems with which these countries are confronted. Moreover, the MNCs themselves face large CSR dilemmas, related to the contribution they can (or cannot) give in the different setting compared to their home countries as well as their attitude vis-a-vis ongoing conflicts. In order to help shed light on these issues, this article explores how MNCs report on CSR and conflict in three Central African countries (Angola, Democratic Republic of the Congo, and Republic of the Congo). Our analysis of company information reveals that opportunities are widely seen and that most MNCs report on their economic and social impacts. However, CSR reporting is fairly generic, and the specific context seems to bear little influence on the type of CSR activities. The conflict dimension also receives limited attention, although some companies show awareness and outline the limitations of their power and the dilemmas inherent to their presence in these countries. The potential for MNCs' involvement in (co)creating sustainable economies is recognised, and needs further research attention in the coming years. (shrink)

It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as 'business ethics' and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model (...) consists of three principal components that are interconnected by five sub-components. The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics. (shrink)

Corporate social responsibility in developing countries has recently received increasing attention, and scholars have pointed to the strong contextuality of CSR in the respective regions. Regarding the latter, however, sub-Saharan Africa has been scrutinized only marginally by academia. Moreover, empirical research on the impact of the institutional context has been scant, despite its attributed importance for CSR. Our article seeks to fill a part of this research gap by investigating CSR website reporting of 211 companies in seven sub-Saharan countries. The (...) study’s aim is twofold: First, we identify to what extent sub-Saharan companies report on CSR and which contents they disclose. Second, by building on institutional theory, we investigate how the socio-economic and political environments influence CSR reporting. For this purpose, we examine the impact of country-level and company-level determinants. We find that the sample African companies’ CSR efforts focus strongly on local philanthropy and therefore differ substantially from Western CSR approaches. Furthermore, we evidence that GDP and level of governance standard positively affect CSR reporting. Our study contributes to the literature by empirically evidencing the contextuality of CSR in Africa and by explaining how specific country- and company-level determinants contribute to or hamper the development of CSR in developing countries. (shrink)

This research engages with the problem of company–community conflict in mining. The inequitable distributions of risks, impacts, and benefits are key drivers of resource conflicts and are likely to remain at the forefront of mining-related research and advocacy. Procedural and interactional forms of justice therefore lie at the very heart of some of the real and ongoing challenges in mining, including: intractable local-level conflict; emerging global norms and performance standards; and ever-increasing expectations for the industry to translate high-level corporate social (...) responsibility policy into on-the-ground practice. This research focuses on the “process” aspects of resource conflicts through an examination of existing grievance-handling procedures at six mining operations where company–community conflict was present. In their current form, and on their own, the six mechanisms were found to be insufficient in their capacity to advance justice. The authors argue that if the overall objective of global norms is that companies construct and perform grievance handling in ways that strongly preference just practices, then “mechanisms-in-practice” must be better understood and constructively critiqued along all justice dimensions. (shrink)

An emerging body of research recognizes the importance of the past and history for corporate social responsibility scholarship and practice. However, the meanings that scholars and practitioners can ascribe to the past and history differ fundamentally, posing challenges to the integration of history and CSR thinking. This essay reviews diverse approaches and proposes a broad conceptualization of the relationship between the past, history, and CSR. We suggest historical CSR as an umbrella term that comprises three distinct theoretical perspectives. The “past-of-CSR” (...) perspective is concerned with the history of CSR and business ethics as a set of concepts and practices. The “past-in-CSR” perspective involves employing empirical historical research to substantiate and elaborate CSR concepts and theories. Finally, the “past-as-CSR” perspective seeks to understand the past as a living, yet contested, facet of current organizations, influencing contemporary perceptions of corporate and managerial responsibility. We then elaborate on conceptual issues and paths that may prove useful for future research. In all, this essay and the thematic symposium it precedes strive to deepen and broaden the salience of the past and history for thinking about business ethics and business responsibilities. (shrink)

This article seeks to defend and develop a stakeholder pragmatism advanced in some of the work by Edward Freeman and colleagues. By positioning stakeholder pragmatism more in line with the democratic and ethical base in American pragmatism (as developed by William James, John Dewey and Richard Rorty), the article sets forth a fallibilistic stakeholder pragmatism that seeks to be more useful to companies by expanding the ways in which value is and can be created in a contingent world. A dialogue (...) between a defence company and peace and arbitration society is used to illustrate the main plot of this article. (shrink)

Management and business literature affirm the role played by stakeholders in corporate social responsibility practices as crucial, but what constitutes a true business–society partnership remains relatively unexplored. This paper aims to improve scholarly and management understanding beyond the usual managers’ perceptions on salience attributes, to include how stakeholders can acquire missing attributes to inform a meaningful partnership. In doing this, a model is proposed which conceptualises CSR practices and outcomes within the frameworks of stakeholder salience via empowerment, sustainable corporate social (...) performances and partnership quality. A holistic discussion leads to generation of propositions on stakeholder salience management, corporate social performance, corporate–community partnership systems and CSR practices, which have both academic and management implications. (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)

The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross-cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further (...) research in the field and testing of the ECCE construct in other cultural and corporate settings. We believe that the ECCE construct makes a contribution to theory and practice in the field as it outlines a theoretical construct for the benefit of other researchers. It is also of managerial interest as it provides a grounded framework of areas to be considered in the implementation in organizations of corporate codes of ethics. (shrink)

The objective of this paper is to develop and describe a construct of the ethos of the corporate codes of ethics (i.e. an ECCE construct) across three countries, namely Australia, Canada and Sweden. The introduced construct is rather unique as it is based on a cross‐cultural sample seldom seen in the literature. While the outcome of statistical analyses indicated a satisfactory factor solution and acceptable estimates of reliability measures, some research limitations have been stressed. They provide a foundation for further (...) research in the field and testing of the ECCE construct in other cultural and corporate settings. We believe that the ECCE construct makes a contribution to theory and practice in the field as it outlines a theoretical construct for the benefit of other researchers. It is also of managerial interest as it provides a grounded framework of areas to be considered in the implementation in organizations of corporate codes of ethics. (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)

Conventional management strategies for anti-corporate anger involve its negative construal as an inappropriate irrationality in need of containment. An alternative account is offered in which such anger comprises a healthy and health-sustaining component of care-based moral agency directed not only toward the affiliative advancement of connection among community members, but also toward the (political) resistance to violation, injustice, and carelessness through which disconnection from responsive community relationships occurs. The role of anger in care-based moral agency is demonstrated through discussion of (...) the classic case of environmental and human health crisis at Love Canal, New York. (shrink)

This article describes a case study on the Machiguenga, a remote Indigenous tribe affected by the Camisea Gas Project in the Peru. We introduce the anthropological concept of ‘glocalization’ and integrate this with organizational knowledge of ‘identity work’. Our findings demonstrate that identity work is a multi-faceted and boundary spanning process that significantly affects stakeholder relations and contributes to conflict between local communities and oil and gas companies. Indigenous identity can be both threatened and strengthened in response to natural gas (...) development and is related to how individuals, communities and the Machiguenga engage in identity work. We also discuss broader implications for management ethics, including a discussion of how Indigenous self-identify processes create a challenge for stakeholder theory. (shrink)

This study examines local communities’ lived experiences and organizations’ care-giving processes regarding four oil and gas projects deployed in three countries. Analyzing the empirical data through the lens of ethics of care reveals that, together with mature justice, the inclination to care conceived at the focal organization creates an ethical culture encouraging caring activities by individuals at the local level. Through close communications with communities, project decision makers at the local level recognize the demanded care of local communities and develop (...) organizations’ caring capacity. The empirical analysis revealed that the care-giving process can also be influenced by the power dynamics of the network of stakeholders. This research emphasizes on the success of a bottom-up approach in caring for local communities, and sheds light on the capability of large organizations in giving care to their distal stakeholders by adopting this approach. Furthermore, it indicates that justice and care both have some useful characteristics and are complementary but, most importantly, are socially constructed and not mutually exclusive. (shrink)

This paper traces the development of corporate citizenship as a way of framing business and society relations, and critically examines the content of contemporary understandings of the term. These conventional views of corporate citizenship are argued to contribute little or nothing to existing notions of corporate social responsibility and corporate philanthropy. The paper then proposes a new direction, which particularly exposes the element of "citizenship". Being a political concept, citizenship can only be reasonably understood from that theoretical angle. This suggests (...) that citizenship consists of a bundle of rights conventionally granted and protected by governments of states. However, the more that governmental power and sovereignty have come under threat, the more that relevant political functions have gradually shifted towards the corporate sphere – and it is at this point where "corporate" involvement into "citizenship" becomes an issue. Consequently, "corporate citizens" are substantially more than fellow members of the same community who cosily rub shoulders with other fellow citizens while bravely respecting those other citizens'' rights and living up to their own responsibility as corporations – as the conventional rhetoric wants us to believe. Behind this relatively innocuous mask then, the true face of corporate citizenship suggests that the corporate role in contemporary citizenship is far more profound, and ultimately in need of urgent reappraisal. (shrink)

Shell’s efforts to integrate the stakeholder management approach into its business practice worldwide involved the gradual development of a long-term, comprehensive strategy. This paper draws on stakeholder management theory and Shell’s experience to identify critical factors that contribute to the process of institutionalizing the principle of stakeholder management in a global company. A key lesson to be drawn from the case is the necessity of ensuring that the process allows for continuous learning, adaptation, and refinement.

Many firms, especially transnational corporations, find it increasingly difficult to predict and handle conflicts with external interest groups. In addition to a set of established stakeholders, they face a complex arena of newly emerging “stakeseekers” who also claim to have a stake in the corporation's decision making. Corporations seek to establish relationships with such groups to anticipate and prevent conflicts that could otherwise wreak havoc on their reputation. Through stakeholder engagement, stakeseekers may be turned into stakeholders. It has been argued (...) that in the process, critics are simply co-opted. However, corporate objectives are not necessarily monolithic. Conceived as a political coalition of various interests, the structure of the corporation often reflects societal divisions. Parts of the corporation can thus serve as sounding boards for external claims. Referring to the case of Royal Dutch/Shell in particular, this article shows how a political coalition perspective on the corporation may help to understand and analyze the politics of stakeholder influence. (shrink)

Although business–NGO (nongovernmental organizations) partnerships have received much attention in recent years, insights have been obtained only from research in “stable” contexts, not from conflict-ridden countries where such collaboration may be even more crucial in building trust and capacity and in addressing governance problems given the absence of a reliable state. This article aims to shed light on business–NGO collaboration in a conflict setting, exploring partnership activities in the Democratic Republic of Congo (DRC). Most partnerships found are philanthropic and deal (...) with “traditional” issues such as health and education in a donor-recipient mode with limited community involvement. There are only a few real transformative partnerships, which address aspects directly related to the conflict from a wider community focus; these involve extractive companies most exposed via mineral development/production. The study also found so-called engagement collaboration that can be divided into activities including the transfer of funds (and characterized by service delivery), and those without funds, focusing on knowledge exchange that furthers companies’ awareness of conflict-sensitive issues into their operations. Peculiarities of the different types of partnerships as well as implications for research and practice are discussed. (shrink)

This article investigates the link between corporate social responsibility (CSR) practices and the reasons for which legitimacy is ascribed or denied. It fills a gap in the literature on CSR and legitimacy that lacks empirical studies regarding the question whether CSR contributes to organisational legitimacy. The problem is discussed by referring to the case of De Beers’s diamond mining partnership with the Government of Namibia. A total of 42 interviews were conducted—41 with stakeholders and one with the focal organisation Namdeb. (...) The 41 stakeholder interviews are analysed with regard to cognitive, pragmatic and moral legitimacy as defined by Suchman (Acad Manage Rev 20(3):571–610, 1995 ). The main finding is that the majority of statements on organisational legitimacy refer to moral legitimacy and most issues raised in this context challenge the company’s legitimacy despite its comprehensive CSR engagement. The study demonstrates that legitimacy gaps can be a result of communication practices that raise unrealistic stakeholder expectations and that the legitimacy gained by CSR engagement in one area cannot substitute legitimacy losses caused by failures in another. (shrink)