This essay asks why Aristotle, certainly no friend to unlimited democracy, seems so much more comfortable with unconstrained rhetoric in political deliberation than current defenders of deliberative democracy. It answers this question by reconstructing and defending a distinctly Aristotelian understanding of political deliberation, one that can be pieced together out of a series of separate arguments made in the Rhetoric, the Politics, and the Nicomachean Ethics.

This study tests an integrative model of corporate political action, the filter model, based on the behavioral theory of the firm. The filter model posits that external political, economic, and industry environments are mediated by organizational structures and resources to affect a firm’s political actions. The authors rate the filter model’s predictive power against that of an economic-based direct-effects model by examining the efforts of about 1,100 U.S.-domiciled manufacturing firms to influence trade policy. LISREL analysis demonstrates that the integrative filter (...) model provides a superior explanation of corporate political action. (shrink)

The most widely debated conception of democracy in recent years is deliberative democracy--the idea that citizens or their representatives owe each other mutually acceptable reasons for the laws they enact. Two prominent voices in the ongoing discussion are Amy Gutmann and Dennis Thompson. In Why Deliberative Democracy?, they move the debate forward beyond their influential book, Democracy and Disagreement.What exactly is deliberative democracy? Why is it more defensible than its rivals? By offering clear answers to these timely questions, Gutmann and (...) Thompson illuminate the theory and practice of justifying public policies in contemporary democracies. They not only develop their theory of deliberative democracy in new directions but also apply it to new practical problems. They discuss bioethics, health care, truth commissions, educational policy, and decisions to declare war. In "What Deliberative Democracy Means," which opens this collection of essays, they provide the most accessible exposition of deliberative democracy to date. They show how deliberative democracy should play an important role even in the debates about military intervention abroad.Why Deliberative Democracy? contributes to our understanding of how democratic citizens and their representatives can make justifiable decisions for their society in the face of the fundamental disagreements that are inevitable in diverse societies. Gutmann and Thompson provide a balanced and fair-minded approach that will benefit anyone intent on giving reason and reciprocity a more prominent place in politics than power and special interests. (shrink)

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

Abstract:This paper investigates whether, in theoretical terms, corporations can be citizens. The argument is based on the observation that the debate on “corporate citizenship” (CC) has only paid limited attention to the actual notion of citizenship. Where it has been discussed, authors have either largely left the concept of CC unquestioned, or applied rather unidimensional and decontextualized notions of citizenship to the corporate sphere. The paper opens with a critical discussion of a major contribution to the CC literature, the work (...) of Logsdon and Wood (Wood and Logsdon 2001; Logsdon and Wood 2002). It continues with a consideration of the nature and role of metaphors for business and of the contestable nature of the political concept of citizenship. It evaluates corporations as citizens through a four-dimensional framework of democratic citizenship offered by Stokes (2002). The analysis suggests that corporations do not easily fit the “liberal minimalist” model of citizenship. It finds, however some possibilities for fit with the three more participatory models. The paper concludes by cautioning against basing corporate citizenship on legal and administrative status or identity, and mapping out specific criteria by which we might determine whether corporations could be considered as citizens by virtue of their participation in processes of governance. (shrink)

ABSTRACT:Drawing upon John Rawls's framework inThe Law of Peoples,this paper argues that MNEs have a responsibility to promote well-ordered social and political institutions in host countries that lack them. This responsibility is grounded in a negative duty not to cause harm. In addition to addressing the objection that promoting well-ordered institutions represents unjustified interference by MNEs, the paper provides guidance for managers of MNEs operating in host countries that lack just institutions. The paper argues for understanding corporate responsibility in relation (...) to the specific institutional environment in which MNEs operate. (shrink)

The essay theorizes the responsibilities moral agents may be said to have in relation to global structural social processes that have unjust consequences. How ought moral agents, whether individual or institutional, conceptualize their responsibilities in relation to global injustice? I propose a model of responsibility from social connection as an interpretation of obligations of justice arising from structural social processes. I use the example of justice in transnational processes of production, distribution and marketing of clothing to illustrate operations of structural (...) social processes that extend widely across regions of the world. The social connection model of responsibility says that all agents who contribute by their actions to the structural processes that produce injustice have responsibilities to work to remedy these injustices. I distinguish this model from a more standard model of responsibility, which I call a liability model. I specify five features of the social connection model of responsibility that distinguish it from the liability model: it does not isolate perpetrators; it judges background conditions of action; it is more forward looking than backward looking; its responsibility is essentially shared; and it can be discharged only through collective action. The final section of the essay begins to articulate parameters of reasoning that agents can use for thinking about their own action in relation to structural injustice. a Footnotesa Thanks to David Alexander, Daniel Drezner, David Owen, and Ellen Frankel Paul for comments on an earlier version of this essay. Thanks to David Newstone for research assistance. (shrink)

Although the critical reconceptualization of Corporate Citizenship (CC) proposed by Néron and Norman appropriately focuses on connotations that enable us to distinguish between CC and the all-inclusive notion of Corporate Social Responsibility (CSR), I argue that they fail to properly account for the misguiding potential of the features of political citizenship they propose to develop further in CC theorizing. It is concluded that the notion of CC is better dispensed with altogether, and that a reorientation on concepts that can truly (...) transcend the boundaries of economic and political organization would benefit the field of business and society. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

This paper argues that multinational corporations face levels of environmental and social responsibility higher than their national counterparts. Drawing on the literatures of stakeholder salience, corporate reputation management, and evidence from the confrontation between Shell and Greenpeace over the Brent Spar, in 1995, two mechanisms – international reputation side effects, and foreign stakeholder salience – are identified and their contribution in creating an environment more restrictive, in terms of environmental and social responsibility, is elaborated on. The paper concludes with discussing (...) the links of the work presented here with a number of ongoing debates within the filed of international business ethics, and the managerial implications of the two mechanisms identified. (shrink)

: We discuss the role that transnational corporations should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social (...) responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity. (shrink)

Jiirgen Habermas is a radical democrat. The source of that self-designation is that his conception of democracy-what he calls "discursive democracy"-is founded on the ideal of "a self-organizing community of free and equal citizens," co- ordinating their collective affairs through their common reason. The author discusses three large challenges to this radical-democratic ideal of collective self-regulation: 1) What is the role of private autonomy in a radical-democratic view? 2) What role does reason play in collective self-regulation? 3) What relevance might (...) a radical- democratic outlook have for contemporary democracies? The author addresses these questions by considering Habermas' answers, and then presenting alternative responses to them. The alternatives are also radical-democratic in inspiration, but they draw on a richer set of normative-political ideas than Habermas wants to rely on, and are more ambitious in their hopes for democratic practice. (shrink)

In the present study, I sought to more fully understand stakeholder organizations’ strategies for influencing business firms. I conducted interviews with 28 representatives of four environmental non-governmental organizations (ENGOs): Natural Resources Defense Council (NRDC), Greenpeace, Environmental Defense (ED), and Union of Concerned Scientists (UCS). Qualitative methods were used to analyze this data, and additional data in the form of reviews of websites and other documents was conducted when provided by interviewees or needed to more fully comprehend interviewee’s comments. Six propositions (...) derived from Frooman (1999) formed the basis for the initial data analysis; all six propositions were supported to some extent. Perhaps more interestingly, the data revealed that Frooman’s model is too parsimonious to adequately describe stakeholder influence strategies and related alliances, necessitating the development of an alternative theoretical model grounded in the data collected. (shrink)

This article reviews the literature on corporate political action (CPA), integrating the perspectives of nine basic social science theories. Theoretical and empirical research grounded in these nine theories have described the characteristics of firms that engage in CPA (who), their rationale (why), and their methods (how). To a much lesser extent, the literature has also addressed how CPA changes over time (when) and the settings in which CPA is done (where). Reexamining the CPA literature this way directs us toward fundamental (...) research questions that have not yet been addressed. (shrink)

Recent years have heralded increasing attention to the role of multinational corporations in regard to human rights violations. The concept of complicity has been of particular interest in this regard. This article explores the conceptual differences between silent complicity in particular and other, more "conventional" forms of complicity. Despite their far-reaching normative implications, these differences are often overlooked.Rather than being connected to specific actions as is the case for other forms of complicity, the concept of silent complicity is tied to (...) the identity, or the moral stature of the accomplice. More specifically, it helps us expose multinational corporations in positions of political authority. Political authority breeds political responsibility.Thus, corporate responsibility in regard to human rights may go beyond "doing no harm" and include apositive obligation to protect. Making sense of this duty leads to a discussion of the scope and limits of legitimate human rights advocacy by corporations. (shrink)

The article assesses the achievements and limitations of the private regulation of global corporate conduct. Private regulation occurs through voluntary, private, nonstate industry and cross-industry codes that address labor practices, environmental performance, and human rights policies. The author argues that while private regulation has resulted in some substantive improvements in corporate behavior, it cannot be regarded as a substitute for the more effective exercise of state authority at both the national and international levels. Ultimately, private regulation must be integrated with (...) and reinforced by more effective state-based and enforced regulatory policies at both the national and international levels. (shrink)

Transnational corporations have become actors with significant political power and authority which should entail responsibility and liability, specifically direct liability for complicity in human rights violations. Holding TNCs liable for human rights violations is complicated by the discontinuity between the fragmented legal/political structure of the TNC and its integrated strategic reality and the international state system which privileges sovereignty and non-intervention over the protection of individual rights. However, the post-Westphalian transition—the emergence of multiple authorities, increasing ambiguity of borders and jurisdiction (...) and blurring of the line between the public and private spheres—should facilitate imposing direct responsibility on transnational firms. Mechanisms for imposing direct responsibility on TNCs are considered including voluntary agreements and international law. However, I conclude that a hybrid public-private regime which relies on non-hierarchical compliance mechanisms is likely to be both more effective and consistent with the structure of the emerging transnational order. (shrink)

The past twenty years have witnessed the consolidation of deliberation as the normative basis of democratic theory. Although different versions of deliberative democracy vary in scope and degree of institutionalization, they share the assumption that the rational consensus engendered through discussion should serve as the normative guide for democratic politics. Although this tradition has roots in the birth of bourgeois liberal thought, it has received renewed attention due to Habermas’s reformulation on the basis of discourse ethics. In his middle period, (...) Habermas had attempted to ground rationality in the structure of discourse itself, in the ideal preconditions of intersubjective communication.1 His more pragmatist heirs, however, jettison transcendental truth claims while maintaining that deliberation can enhance the legitimacy of consensual solutions to the moral dilemmas which divide citizens. (shrink)

Tobacco companies have started to position themselves as good corporate citizens. The effort towards CSR engagement in the tobacco industry is not only heavily criticized by anti-tobacco NGOs. Some opponents such as the the World Health Organization have even categorically questioned the possibility of social responsibility in the tobacco industry. The paper will demonstrate that the deep distrust towards tobacco companies is linked to the lethal character of their products and the dubious behavior of their representatives in recent decades. As (...) a result, tobacco companies are not in the CSR business in the strict sense. Key aspects of mainstream CSR theory and practice such as corporate philanthropy, stakeholder collaboration, CSR reporting and self-regulation, are demonstrated to be ineffective or even counterproductive in the tobacco industry. Building upon the terminology used in the leadership literature, the paper proposes to differentiate between transactional and transformational CSR arguing that tobacco companies can only operate on a transactional level. As a consequence, corporate responsibility in the tobacco industry is based upon a much thinner approach to CSR and has to be conceptualized with a focus on transactional integrity across the tobacco supply chain. (shrink)

A proposed global theory of corporate political activity (CPA) analyzes the complex resource allocation choices involved in integrating politically relevant cross-border and multilevel strategies for multinational enterprises (MNEs). Cross-border CPA is “horizontal” allocation of scarce corporate resources by MNEs to politically relevant strategies across multiple countries. Globalization reshapes CPA among multiple levels functioning below, at, and above national governments. Subnational communities and international policy regimes, supranational quasigovernmental institutions, and supranational nongovernmental organizations all affect businesses. Multilevel CPA is “vertical” allocation of (...) scarce corporate resources to politically relevant strategies among subnational, national, regional, and global levels. Furthermore, in each country and at each level, business-relevant policies are determined in multiple policy arenas, shaped by widely differing nonmarket institutions, corruption conditions, and stakeholder demands for corporate social responsibility. Multiple policy “arena” allocation adds to the analytical complexity of the CPA strategizing problem. Implications for scholarship and practice are presented. (shrink)