The primary appeal of stakeholder theory in business ethics derives from its promise to help solve two large and often morally difficult problems: (1) how to manage people fairly and efficiently and (2) how to determine the extent of a firm's moral responsibilities beyond its obligations to enhance its profits and economic value. This article investigates a variety of conceptual quandaries that stakeholder theory faces in addressing these two general problems. It argues that these quandaries pose intractable obstacles for stakeholder (...) theory which prevent it from delivering on its large promises. Acknowledging that various versions of stakeholder theory have made a contribution in elucidating the complex nature of firms and business decision making, the article argues that it is time to move on. More precise explications of the nature of modern firms focusing on the application of basic moral principles to different business contexts and situations are likely to prove more accurate and useful. (shrink)

Social norms are an important input for ethical decisions in any business context. However, the cross-cultural discovery of extant social norms presents a special challenge to international management because norms may be inscrutable to outsiders. This article considers the contribution of Integrative Social Contracts Theory (ISCT) to the analysis of social norms in business ethics. It questions the origins and dynamics of norms from a sociological perspective, and identifies a tension between prescriptive efforts to make norms obligatory and positivist accounts (...) that describe norms as evolving and unstable. In the presence of dynamic and incomplete norms, managers can either deliberate with stakeholders to make norms flexible or codify norms to make them rigid. This essay argues that deliberation is the only reliable method for anticipating emergent norms. (shrink)

Today, sustainable relations with a broad range of key stakeholders are not only important from a normative business ethics perspective, but also from an entrepreneurial viewpoint to allow and support the long-term survival of a firm. We will argue that the traditional conception of a firm’s corporate social responsibility does not reflect this view and that a comprehensive and dynamic conception of a firm’s responsibilities is necessary to map the reality of business practice and to manage the challenges implied by (...) sustainability. We think that distributive justice, that is the way in which firms involve their stakeholders in their wealth creation and dissemination processes, provides a comprehensive understanding of corporate responsibilities. Concerning procedural justice, we will discuss how firms involve stakeholders in their strategic processes according to their contribution to wealth creation. In the course of the article, we will propose a framework along with three design principles that can be used for shaping dynamic and comprehensive corporate responsibilities, and which thereby allow a sustainable procedure for changing business and non-business environments. (shrink)

The purpose of this paper is to analyse the Spanish mobile phone industry to determine how mobile phone companies and certain institutions can improve protection for children who use mobile phones. We carried out a multivariate statistical analysis using anonymous primary data from mobile phone companies, and institutions and associations that protect children, to compare these stakeholders’ opinions and to put forward solutions. We proved that, even though some European countries have made an effort to provide safer ICT services, all (...) stakeholders still need to cooperate and agree on solutions to the commercial problems associated with children using mobile phones. This can be done by signing codes of conduct. We found that even though some companies implement measures to protect children from accessing harmful content via their mobile phones, they do so for reasons of legal and not social responsibility. (shrink)

In recent times, representatives of American management science have been arguing increasingly for a functionalization of ethics to change economic thinking: what they are seeking is the systematic integration of ethics into the economic paradigm. Using the insights developed by Hirschman, I would like to show how one must first expose the rhetoric of those critics of change (referred to below as conservatives or reactionaries) in order then to implement that which is new (representatives of this approach are referred to (...) below as progressives). Such an ‹unmasking’ works particularly well when one can defuse the arguments of the reactionaries – which is precisely what one achieves by strategically integrating ethics into economics. In his work The Rhetoric of Reaction Hirschman examines three basic forms of reactionary thought: the perversity thesis, the futility thesis, and the jeopardy thesis. According to the perversity thesis, intended goals are transformed into their opposites. The futility thesis argues that the setting of goals is useless since history runs its own course independent of those goals. The jeopardy thesis claims to preserve what already exists since change might substantially endanger that which has already been achieved. The importance of Hirschman’s ideas for the strategic interplay between the academic disciplines can be seen quite clearly in the example of German business ethics. This will be displayed below with reference to Hirschman’s three theses. Finally, implications will be drawn for business ethics in general and for management theory in particular. (shrink)

Purpose The purpose of this paper is to develop an ethical framework for the marketing of corporate social responsibility. Methods The approach is a conceptual one based on virtue ethics and on the corporate identity literature. Furthermore, empirical research results are used to describe the opportunities and pitfalls of using marketing communication tools in the strategy of building a virtuous corporate brand. Results/conclusions An ethical framework that addresses the paradoxical relation between the consequentialist perspective many proponents of the marketing of (...) CSR adopt, and ethical perspectives which criticize an exclusive profit-oriented approach to CSR. Furthermore, three CSR strategies in relation to the marketing of CSR are discussed. For each CSR strategy it is explored how a corporation could avoid falling into the promise/performance gap. (shrink)

Labour and employment law no longer has a monopoly on regulating labour relations and is facing a crisis as its effectiveness is questioned. Codes of conduct adopted by companies to recognise their social responsibility for the global supply chain are instruments that can usefully complement labour and employment law. The aim of this paper is to analyse in depth the legal nature of codes of conduct and their impact on labour and employment law. Will the use of codes of conduct (...) reinforce the crisis of labour and employment law in the era of globalisation or will these codes be part of a solution to this crisis? Do we have to consider codes of conduct as competitors to labour and employment law or as an opportunity for rethinking the way that labour and employment law norms should be produced and applied? (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.

This paper explores the relationship between attitudes to corporate social responsibility (CSR) and the cultural dimensions of business activity identified by Hofstede & Hofstede using a sample of nearly 90,000 stakeholders drawn from 28 countries. We develop five general propositions relating attitudes to CSR to aspects of culture. We show that the propensity of consumers to punish firms for bad behaviour varies in ways that appear to relate closely to the cultural characteristics identified by Hofstede. Furthermore, this variation appears to (...) be understandable in terms of the standard interpretation of the Hofstede dimensions, suggesting that cultural variation in the attitudes of consumers may play an important role in helping us to understand variations in CSR across countries. This in turn has implications for how managers of multinational companies should implement CSR strategies in different cultural contexts. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility (CSR), meant as an extended model of corporate governance of the firm. Whereas, justificatory issues have been discussed in a related paper (Sacconi, L.: 2006b, this journal), in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation as a (...) way to implement the social contract on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation (which result from the impact of unforeseen contingencies and from bounded rationality), the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility (CSR), meant as an extended model of corporate governance of the firm. It focuses on justification according to the contractarian point of view (leaving compliance and implementation problems to a related article, [Sacconi 2004b, forthcoming in the Journal of Business Ethics]). It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm’s (...) stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

While companies are increasingly convinced of the relevance of CSR, many are still struggling to define their responsibility. Part of the answer to this question can be found in the dual approach towards CSR. The authors unravel the concept of CSR into two components: responsibility and responsiveness. Regarding the firm's responsiveness towards society, companies can adopt two positions. They might adopt an inside‐out approach towards CSR and emphasise their own ambitions. Alternatively, they can approach stakeholders from an outside‐in perspective, wherein (...) stakeholder claims dominate. The authors argue that both perspectives are inadequate with regard to complex societal issues. Therefore, a third approach towards societal interaction is proposed. This is characterised by a process of collective sensemaking, aimed at understanding the issue and defining responsibilities. (shrink)

This article uses the Swedish example to illustrate how corporate social responsibility (CSR) is understood and interpreted when it enters a welfare state context where social issues have traditionally been the domains of the state and of politicians. Among the implications one finds a relative scepticism of traditionally strong actors on the labour market, such as the state, trade unions and employers. This relative scepticism is primarily explained by an enduring idea of the role of business in society which stands (...) in contradistinction to the idea expressed in the corporate centred idea of CSR. Still, CSR gains a foothold in the welfare state context, mainly because of the flexibility of the concept which allows for 'escape routes' — an understanding of CSR that focusses on issues at arm's length from the traditional welfare context. CSR also benefits from being codified in soft regulation, thereby becoming a legitimate super-national point of reference for all relevant actors. The possibility of developing new global arenas for espousing ideals partly in conflict with traditional ones also explains why CSR has become an established concept. In Sweden, such arenas have been created through the activities of multinational corporations, NGOs, investors, the media, consultants and other actors. (shrink)

Extending the dialogue on corporate social performance (CSP) as descriptive stakeholder management (Clarkson, Acad Manage Rev 20: 92, 1995), we examine differences in CSP activity between family and nonfamily firms. We argue that CSP activity can be explained by the firm's identity orientation toward stakeholders (Brickson, Admin Sci Quart 50: 576, 2005; Acad Manage Rev 32: 864, 2007). Specifically, individualistic, relational, or collectivistic identity orientations can describe a firm's level of CSP activity toward certain stakeholders. Family firms, we suggest, adopt (...) a more relational orientation toward their stakeholders than nonfamily firms, and thus engage in higher levels of CSP.Further, we invoke collectivistic identity orientation to argue that the higher the level of family or founder involvement within a family firm, the greater the level of CSP toward specific stakeholders. Using social performance rating data from 1991 to 2005, we find that family and nonfamily firms demonstrate notable differences in terms of social initiatives and social concerns. We also find that the level of family and founder involvement is related to the type and frequency of a family firm's social initiatives and social concerns. (shrink)

ABSTRACT:Drawing a framework from strategic stakeholder theory and using 1999 to 2010 panel data from the United Kingdom’s (UK) non-life insurance industry, we examine the effect of reinsurance on the decisions to donate to charities, and the amount given. We find that reinsurance substitutes for charitable giving as it optimizes the interests of multiple stakeholders. We further note that corporate giving is directly related to the size and age of insurers, proportion of female directorships and insider ownership, but generally inhibited (...) by chief executive officer (CEO) bonus plans, dominant shareholders, and financial experts on the board. Interestingly, when reinsurance interacts with board-level variables we find that the donations decision is positively related to CEO bonus plans, and negatively linked with inside ownership and the proportion of female board members. Our research results could have important implications for stakeholders. (shrink)

ABSTRACT:How does the state influence stakeholder legitimacy? And how does this process affect an industry’s ethical challenges? Stakeholder theory adopts a forward-looking perspective and seeks to understand how managers can address stakeholders’ claims to improve the firm’s ability to create value. Yet, existing work does not adequately address the role of the state in defining the stakeholder universe nor the implications this may have for subsequent ethical challenges managers face. This article develops a political stakeholder theory (political ST) by weaving (...) together the political economy, stakeholder theory, and legitimacy literatures. Political ST shows how state policies influence stakeholder legitimacy and, in turn, affect an industry’s ethical challenges. This article integrates the concept of agonism to address the perennial tension between markets and states and its implications for firms and their managers. Political ST is then applied to the case of microfinance, followed by a discussion of the contributions of this approach. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. It focuses on justification according to the contractarian point of view. It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm's stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the (...) extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

In recent times, representatives of American management science have been arguing increasingly for a functionalization of ethics to change economic thinking: what they are seeking is the systematic integration of ethics into the economic paradigm. Using the insights developed by Hirschman, I would like to show how one must first expose the rhetoric of those critics of change in order then to implement that which is new. Such an 'unmasking' works particularly well when one can defuse the arguments of the (...) reactionaries — which is precisely what one achieves by strategically integrating ethics into economics. In his work The Rhetoric of Reaction Hirschman examines three basic forms of reactionary thought: the perversity thesis, the futility thesis, and the jeopardy thesis. According to the perversity thesis, intended goals are transformed into their opposites. The futility thesis argues that the setting of goals is useless since history runs its own course independent of those goals. The jeopardy thesis claims to preserve what already exists since change might substantially endanger that which has already been achieved. The importance of Hirschman's ideas for the strategic interplay between the academic disciplines can be seen quite clearly in the example of German business ethics. This will be displayed below with reference to Hirschman's three theses. Finally, implications will be drawn for business ethics in general and for management theory in particular. (shrink)

Labour and employment law no longer has a monopoly on regulating labour relations and is facing a crisis as its effectiveness is questioned. Codes of conduct adopted by companies to recognise their social responsibility for the global supply chain are instruments that can usefully complement labour and employment law. The aim of this paper is to analyse in depth the legal nature of codes of conduct and their impact on labour and employment law. Will the use of codes of conduct (...) reinforce the crisis of labour and employment law in the era of globalisation or will these codes be part of a solution to this crisis? Do we have to consider codes of conduct as competitors to labour and employment law or as an opportunity for rethinking the way that labour and employment law norms should be produced and applied? (shrink)

This paper explores the relationship between attitudes to corporate social responsibility (CSR) and the cultural dimensions of business activity identified by Hofstede & Hofstede using a sample of nearly 90,000 stakeholders drawn from 28 countries. We develop five general propositions relating attitudes to CSR to aspects of culture. We show that the propensity of consumers to punish firms for bad behaviour varies in ways that appear to relate closely to the cultural characteristics identified by Hofstede. Furthermore, this variation appears to (...) be understandable in terms of the standard interpretation of the Hofstede dimensions, suggesting that cultural variation in the attitudes of consumers may play an important role in helping us to understand variations in CSR across countries. This in turn has implications for how managers of multinational companies should implement CSR strategies in different cultural contexts. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. Whereas, justificatory issues have been discussed in a related paper, in this essay I focus on the implementation of and compliance with this normative model. The theory of reputation games, with reference to the basic game of trust, is introduced in order to make sense of self-regulation as a way to implement the social contract (...) on the multi-fiduciary model of corporate governance. This affords understanding of why self-regulation, meant as mere recourse to a long-run strategy in a repeated trust game, fails. Two basic problems for the functioning of the reputation mechanism are examined: the cognitive fragility problem, and the motivational problem. As regards the cognitive fragilities of reputation, the paper develops the logic and the structure that self-regulatory norms must satisfy if they are to serve as gap-filling tools with which to remedy cognitive limitations in the reputation mechanism. The motivation problem then arises from the possibility of sophisticated abuse by the firm. Developed in this case is an entirely new application of the theory of conformism-and-reciprocity-based preferences, the result of which is that the stakeholders refuse to acquiesce to sophisticated abuse on the part of the firm. (shrink)

While companies are increasingly convinced of the relevance of CSR, many are still struggling to define their responsibility. Part of the answer to this question can be found in the dual approach towards CSR. The authors unravel the concept of CSR into two components: responsibility and responsiveness. Regarding the firm's responsiveness towards society, companies can adopt two positions. They might adopt an inside‐out approach towards CSR and emphasise their own ambitions. Alternatively, they can approach stakeholders from an outside‐in perspective, wherein (...) stakeholder claims dominate. The authors argue that both perspectives are inadequate with regard to complex societal issues. Therefore, a third approach towards societal interaction is proposed. This is characterised by a process of collective sensemaking, aimed at understanding the issue and defining responsibilities. (shrink)

The stakeholder approach has become a popular perspective in mainstream management and the corporate social responsibility (CSR) literature. However, it remains an open question as to how real-life managers actually view stakeholders and what rationales and logics are used for explaining the relationship between the firm and its constituencies. This article examines whom managers in multinational corporations (MNCs) consider to be their important stakeholders, and how they describe the societal responsibilities towards these groups and individuals. It is concluded that managers (...) still tend to hold a rather narrow (managerial) view of the firm and generally give priority to stakeholder groups who are directly involved in the firm's core transformation system. The conclusions are derived from interview and survey data from 647 managers in four MNCs. The paper is based on data collected as part of project RESPONSE: a European Union- and corporate-funded initiative on CSR. (shrink)

The question of whether ethical individuals have a disadvantage in becoming leaders is an important one that has not been adequately discussed in the business ethics/leadership literature. In this paper, drawing on Plato’s middle dialogues and particularly on the Republic, I develop a Platonic framework of the constraints that might hinder the emergence of what the dialogues term ‘philosopher kings’. Subsequently, I use this framework to elucidate the emergence of ethical leaders in todays’ organizations and conclude with a discussion of (...) this paper’s implications for the ethical leadership literature. (shrink)

In today’s competitive economy, the war for talent has intensified. Organizations are increasingly investing in student engagement initiatives to build a robust talent pipeline. Among these initiatives, the offering of internship placements is a popular choice as it not only helps identify suitable talent, students can also benefit with valuable opportunities to develop work-related skills and gain experience. However, ensuring mutually beneficial outcomes for all stakeholders involved remains a challenge due to diverging expectations among stakeholder groups. This study aims to (...) enhance our understanding of high-quality internship design by applying stakeholder theory (ST) and the expectancy theory of motivation (ET) as theoretical frameworks. Qualitative research methods were employed, including semi-structured interviews with key stakeholders from higher education institutions, human resources managers, and front-line supervisors as well as a focus group with graduating business students. Thematic analysis of the data revealed several key themes related to stakeholder priorities and interests. The findings of this paper contribute to the fields of ST and ET by addressing an under-researched area: the motivations of supervisors as crucial stakeholders in delivering the internship experience. Scholars and practitioners have largely overlooked this aspect. From a managerial perspective, the findings highlight opportunities for fostering more synergistic partnerships between stakeholders, not only at the institutional level but also among internal stakeholder groups, including top management, human resources functions, and front-line supervisors. (shrink)

We have conducted a case study of Foxconn’s suicide crisis when 12 Foxconn employees committed suicide during the first 5 months of 2010. In this case study, we have examined Foxconn’s crisis communication strategies during the critical period and explored the failure in crisis communication in terms of the stakeholder approach. Our findings show that Foxconn adopted a mixed response strategy by trying to address the concerns of various stakeholders while refusing to take responsibility for the suicides. Foxconn’s failure in (...) the crisis was due to its imbalanced stakeholder relations that failed to recognize employees as important stakeholders, resulting in the failure to provide the ethics of care and justice that was warranted. Our findings suggest that an ethical stakeholder approach can complement Benoit’s and Coombs’ crisis communication theories and strategies. (shrink)

Originated in the West, stakeholder theory is normatively anchored in Western value systems. Differences in value orientations and ethical systems in this global age call for culturally pertinent stakeholder theory. In this article, we argue that Confucianism forms an additional normative basis for stakeholder theory, appropriate for a Confucian context. We demonstrate it through application of Confucianism in major stakeholder relationships. The Confucian stakeholder theory provides a meaningful addition to the corpus of stakeholder literature.

Exploring the construct of social-responsibility orientation across three Asian and two Western societies, we show evidence that top-level executives in these societies hold fundamentally different beliefs about their responsibilities toward different stakeholders, with concomitant implications for their understanding and enactment of responsible leadership. We further find that these variations are more closely aligned with institutional factors than with cultural variables, suggesting a need to clarify the connection between culture and institutions on the one hand and culture and social-responsibility orientations on (...) the other. (shrink)

This study revisits the relation between corporate performance and corporate social responsibility in the context of a major shift in firms’ credit risk status. Relying on corporate credit rating as a performance indicator, we examine whether firms under the scrutiny of rating agencies trade-off CSR engagement for credit quality improvement. To explore whether firms adjust their CSR engagement after a focal rating change, we focus on the investment–speculative grade threshold because of its importance in accessing the public debt market. We (...) find that firms that lose the investment grade rating subsequently increase CSR engagement. We also uncover that improving CSR engagement helps firms restore their credit ratings ex post. Our findings support the view of CSR engagement as a valuable risk management strategy. (shrink)

There has, in recent decades, been considerable scholarship regarding the moral aspects of corporate governance, and differences in corporate governance practices around the world have been widely documented and investigated. In such a context, the claims associated with moral relativism are relevant. The purpose of this paper is to provide a detailed consideration of how the metaethical and normative claims of moral relativism in particular can be applied to corporate governance. This objective is achieved, firstly, by reviewing what is meant (...) by metaethical moral relativism and identifying two ways in which the metaethical claim can be assessed. The possibility of a single, morally superior model of corporate governance is subsequently considered through an analysis of prominent works justifying the shareholder and stakeholder approaches, together with a consideration of academic agreement in this area. The paper then draws on the work of Wong, firstly in providing an argument supporting metaethical moral relativism and secondly regarding values of tolerance and/or accommodation that can contribute to the normative claim. The paper concludes by proposing an argument that it is morally wrong to impose a model of corporate governance where there are differences in moral judgements relevant to corporate governance, or to interfere with a model in similar circumstances, and closes with consideration of the argument’s implications. (shrink)

Scholars have long debated whether leader's integrity affects managerial decision making with respect to social responsibility. In this paper, we propose a model in which transformational leadership mediates integrity and corporate social responsibility and examine the relationship between these concepts. A survey of 170 senior managers from 50 organizations was conducted. Results indicate that integrity is a predictor of transformational leadership behavior and that transformational leaders’ behaviors are linked to CSR practices. It was also found that leaders rated with higher (...) integrity are engaged in CSR because they exhibit more transformational leadership behaviors. These findings add to the extant literature by demonstrating that integrity is important as transformational leaders engage more actively on ‘responsible’ behaviors. Practical implications call for an understanding among corporate leaders of the benefits of integrity and how it relates to transformational leadership. Organizations can improve their selection and leadership development processes by focusing on these two dimensions. (shrink)

Whole genome sequencing can be a cost-effective and efficient means of diagnosis for some children, but it also raises a number of ethical concerns. One such concern is how researchers derive and communicate results from WGS, including future requests for further analysis of stored sequences. The purpose of this paper is to think about what is at stake, and for whom, in any solution that is developed to deal with such requests. To accomplish this task, this paper will utilize stakeholder (...) theory, a common method used in business ethics. Several scenarios that connect stakeholder concerns and WGS will also posited and analyzed. This paper concludes by developing criteria composed of a series of questions that researchers can answer in order to more effectively address requests for further analysis of stored sequences. (shrink)

ABSTRACT:Despite 40 years of equal opportunities policies and more than two decades of government and organization initiatives aimed at helping women reach the upper echelons of the corporate world, women are seriously underrepresented on corporate boards. Recently, fifteen countries sought to redress this imbalance by introducing gender quotas for board representation. The introduction of board gender quota legislation creates ethical tensions and dilemmas which we categorize in terms of motivations, legitimacy, and outcomes. We investigate these tensions through four overarching theoretical (...) perspectives: institutional, stakeholder, social identity, and social capital. We outline a future research agenda based on how these tensions offer greater focus to research on quotas and more broadly to ethics and diversity in organizations in terms of theory, anticipated ethical tensions, data, and methodology. In sum, our review seeks to synthesize existing multidisciplinary research and stimulate future enquiry on this expanding set of legislation. (shrink)

ABSTRACTSome firms are initiating pro-stakeholder activities and policies that transcend conventional corporate social responsibility conceptions and seem inconsistent with their business interests or economic responsibilities. These initiatives, which are neither legally nor morally obligatory, are responding to calls for a more active role of business in society and for a broader interpretation of CSR. In fact, they benefit stakeholders in a superior and an innovative way and are difficult to reconcile with commonly used rationales in the extant CSR literature, such (...) as win-win opportunities, creating shared value, or corporate philanthropy. For better insight, we develop a qualified account of the concept of supererogation from ethical theory. This account, which examines voluntary responses to moral obligations from which a business is normally excused, is applied to identify the unique features of the initiatives that are not readily understood within conventional reasoning, which is generally focused on a business case. (shrink)

This paper examines the shareholder primacy norm as a widely acknowledged impediment to corporate social responsibility and explores the role of business schools in promoting the SPN but also potentially as an avenue for change by addressing misconceptions about shareholder primacy and the purpose of business. We start by explaining the SPN and then review its status under US and UK laws and show that it is not a likely legal requirement, at least under the guise of shareholder value maximization. (...) This is in contrast to the common assertion that managers are legally constrained from addressing CSR issues if doing so is inconsistent with the economic interests of shareholders. Nonetheless, while the SPN might be muted as a legal norm, we show that it is certainly evident as a social norm among managers and in business schools—reflective, in part, of the sole voting rights of shareholders on corporate boards and of the dominance of shareholder theory—and justifiably so in the view of many managers and business academics. We argue that this view is misguided, not least when associated with claims of a purported legally enforceable requirement to maximize shareholder value. We propose two ways by which the influence of the SPN among managers might be attenuated: extending fiduciary duties of executives to non-shareholder stakeholders and changes in business school teaching such that it covers a plurality of conceptions of the purpose of the corporation. (shrink)

Deontological and teleological evaluations are widely utilized in the context of consumer decision-making. Despite their use, the differential effect of these distinct types of evaluations, and the conditions under which they hold, remains an unresolved issue. Thus, we conduct a meta-analysis of 316 effect sizes, from 53 research articles, to evaluate the extent to which deontological and teleological evaluations influence ethical judgments and intentions, and under what circumstances the influence occurs. The effect is explored across three categories of moderators: (1) (...) contextual elements of the ethical issue, (2) stakeholders, and (3) methodological characteristics of primary studies. We find that the overall effect of deontological evaluations on ethical judgments and intentions is stronger than for teleological evaluations; however, the magnitude of the effect is contingent on several moderators. Deontological evaluations are weaker in offline consumer contexts and stronger when there are financial implications of the ethical issue. Conversely, the effect of teleological evaluations is relatively stable across ethical consumer contexts. Teleological evaluations are stronger from a utilitarian perspective than from an egoist one. Furthermore, the effect of deontological evaluations is weaker, but the effect for teleological evaluations is stronger, when the decision-maker has a personal relationship (as compared to an organizational relationship) with the victim of the unethical act. Findings validate the effect of both deontological and teleological evaluations on ethical judgments and intentions and highlight their importance in consumers’ ethical decision-making. Implications for developing programs to prevent consumer unethical behavior are discussed. (shrink)

A number of tensions have been suggested between stakeholder theory and strategic management (SM). Following a brief review of the histories of stakeholder theory and mainstream SM, we argue that many of the tensions are more apparent than real, representing different narratives about stakeholder theory, SM, business, and ethics. Part of the difference in these two theoretical positions is due to the fact that they seek to solve different problems. However, we suggest how there are areas of overlap, and we (...) argue that some of the tensions may, instead, provide interesting ways to put the two areas of scholarship and practice together. We maintain that SM and stakeholder theory could mutually benefit from a more pragmatist philosophy. (shrink)

This article examines the way that for-profit businesses should take into account the interests of the citizens in the liberal democratic societies in which they operate. I will show how a contractualist version of stakeholder theory identifies the relevant moral interests of both shareholders and citizen stakeholders, and provides a method for giving their interests appropriate consideration. These include (1) the interests that individuals have with respect to private property, (2) the interests citizens have in receiving equitable consideration in the (...) political process, and (3) citizens' interests which give them the collective right to determine the legal and economic structure of their societies. Using this contractualist analysis, I argue that corporations should consciously take into account the interests of citizen stakeholders when there is no other social mechanism for protecting their interests as citizens. (shrink)

Over the last few years, there has been an exaggeratedly widespread and frequently confused use of the concepts of 'stakeholder' and 'corporate social responsibility'. However, some interesting insights of both these notions can be found in traditional European business administration studies. In this article, the Italian view will be examined. In particular, this paper investigates the teachings of some of the historical masters of the Italian "Economia Aziendale", with particular attention to the concept of the azienda, its finalism and its (...) essential characteristics, in order to verify some consistencies with the more recent Stakeholder Management Theory. Principles and considerations seem to emerge from EA scholars' seminal works that unequivocally connect ethics with business decisions. EA fits in with SMT in many ways, and the former seems, moreover, to suggest a specific normative point of view from which the role of ethics in business activities can be approached. (shrink)

We address how to ethically evaluate workplace practices when workplace behavioral norms conflict with employees’ attitudes toward those norms, which, according to research on psychological contract violations, regularly occurs. Drawing on Scanlonian contractualism, we introduce the intersubjective reflection process (IR process). The IR process ethically evaluates workplace practices according to whether parties to a workplace practice have intersubjectively valid grounds to veto the practice. We present normative and empirical justification for this process and apply the IR process to accounts of (...) workplace moral dilemmas. We end by identifying future directions for research related to the IR process. (shrink)

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner–managers’ perceptions of stakeholder management in six European countries. The comparative analysis is followed by (...) a discussion of how institutional, cultural and linguistic contexts can influence owner–managers’ sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe. (shrink)

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner—managers' perceptions of stakeholder management in six European countries. The comparative analysis is followed by (...) a discussion of how institutional, cultural and linguistic contexts can influence owner—managers' sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe. (shrink)

The vast majority of empirical research on stakeholder management has traditionally focused on multinational corporations. Only in recent years, scholars have begun to pay attention to the stakeholder management concept in relation to small- and medium-sized enterprises (SMEs). The few existing studies in this area, however, discuss SMEs as a context free category or remain focused on single country analysis. This cross-national empirical research investigates SME owner–managers’ perceptions of stakeholder management in six European countries. The comparative analysis is followed by (...) a discussion of how institutional, cultural and linguistic contexts can influence owner–managers’ sensemaking of stakeholder management. Our study questions the universality of specific management terms and proposes that more attention should be paid to the institutional, cultural and linguistic environments that shape economic activity in different parts of Europe. (shrink)

We predict multistakeholder benefits as a measure of organizational performance from the perspective of important organizational stakeholders. Specifically, we identify the relative importance of theoretical antecedents that affect the different dimensions of stakeholder benefits. Offering the first empirical synthesis of multistakeholder benefits to date, we assess the statistical explanatory power of different theories in the literature, focusing on the extent to which their suggested antecedents of organizational performance may lead to improvements in multiple dimensions of stakeholder benefits. Based on 110 (...) empirical studies since 1990 to date concerning any two of four stakeholder groups (investors, customers, employees, and community /environment), we find no evidence for any single theory to have sufficient explanatory power in predicting benefits concerning all four stakeholder groups. Thus, we cannot reduce different mechanisms leading to multistakeholder benefits to a grand model or theory but need to resort to a multi-theoretical synthesis. Taking stock of the meta-analysis, we suggest future studies should fill three gaps: multiple dimensions within a stakeholder benefit, causal complexity, and inequality of stakeholder benefit creation. (shrink)