An integrity-based approach to ethics management combines a concern for the law with an emphasis on managerial responsibility for ethical behavior. Though integrity strategies may vary in design and scope, all strive to define companies’ guiding values, aspirations, and patterns of thought and conduct. When integrated into the day-to-day operations of an organization, such strategies can help prevent damaging ethical lapses while tapping into powerful human impulses for moral thought and action. Then an ethical framework becomes no longer a burdensome (...) constraint within which companies must operate, but the governing ethos of an organization. (shrink)

At the beginning of the 21st century the conditio humana cannot be understood nationally or locally but only globally. This constitutes a revolution in the social sciences. The `sociological imagination' so far has basically been a nation state imagination. The main problem is how to redefine the sociological frame of reference in the horizon of a cosmopolitan imagination. For the purpose of empirical research I distinguish between three concepts: interconnectedness, liquid modernity and cosmopolitization from within. The latter is a kind (...) of class analysis after class analysis, which takes on board globalization internalized. For the purposes of social analysis, therefore, it is necessary to distinguish systematically between the national manifestation on the one hand and cosmopolitan reality of `global flows', currents of information, symbols, money, risks, people, social inequalities, on the other. This internal involuntary and often unseen cosmopolitanization from below of the national sphere of experience is occurring, however, with the power of economic globalization. So what does inner `cosmopolitanization' mean? The key concepts and questions of a way of life, such as nourishment, production, identity, fear, memory, pleasure, fate, power and politics, can no longer be located and understood nationally, but only globally whether in the shape of globally shared collective futures, capital flows, impending ecological or economic catastrophes, global foodstuff chains, transnational power games, or the `Esperanto' of pop music. In this article I look at transformation in the understanding of space-time, of identity, of the production paradigms, as well as at the resulting consequences for key sociological concepts like class and power and, within this frame, point to certain dilemmas of cosmopolitanism. (shrink)

We understand responsible leadership as a social-relational and ethical phenomenon, which occurs in social processes of interaction. While the prevailing leadership literature has for the most part focussed on the relationship between leaders and followers in the organization and defined followers as subordinates, we show in this article that leadership takes place in interaction with a multitude of followers as stakeholders inside and outside the corporation. Using an ethical lens, we discuss leadership responsibilities in a stakeholder society, thereby following Bass (...) and Steidelmeier’s suggestion to discuss “leadership in the context of contemporary stakeholder theory” (1999: 200). Moreover, from a relational and stakeholder perspective we approach the questions: What is responsible leadership? What makes a responsible leader? What qualities are needed? Finally, we propose a so-called “roles model” of responsible leadership, which gives a gestalt to a responsible leader and describes the different roles he or she takes in leading stakeholders and business in society. (shrink)

Modern society is challenged by a loss of efficiency in national governance systems values, and lifestyles. Corporate social responsibility (CSR) discourse builds upon a conception of organizational legitimacy that does not appropriately reflect these changes. The problems arise from the a-political role of the corporation in the concepts of cognitive and pragmatic legitimacy, which are based on compliance to national law and on relatively homogeneous and stable societal expectations on the one hand and widely accepted rhetoric assuming that all members (...) of society benefit from capitalist production on the other. We therefore propose a fundamental shift to moral legitimacy, from an output and power oriented approach to an input related and discursive concept of legitimacy. This shift creates a new basis of legitimacy and involves organizations in processes of active justification vis-à-vis society rather than simply responding to the demands of powerful groups. We consider this a step towards the politicization of the corporation and attempt to re-embed the debate on corporate legitimacy into its broader context of political theory, while reflecting the recent turn from a liberal to a deliberative concept of democracy. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, (...) on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

Described by the philosopher A.J. Ayer as a work of 'great originality and power', this book revolutionized contemporary thinking on science and knowledge. Ideas such as the now legendary doctrine of 'falsificationism' electrified the scientific community, influencing even working scientists, as well as post-war philosophy. This astonishing work ranks alongside _The Open Society and Its Enemies_ as one of Popper's most enduring books and contains insights and arguments that demand to be read to this day.

In Between Facts and Norms, Jürgen Habermas works out the legal and political implications of his Theory of Communicative Action (1981), bringing to fruition the project announced with his publication of The Structural Transformation of the Public Sphere in 1962. This new work is a major contribution to recent debates on the rule of law and the possibilities of democracy in postindustrial societies, but it is much more. The introduction by William Rehg succinctly captures the special nature of the work, (...) noting that it offers a sweeping, sociologically informed conceptualization of law and basic rights, a normative account of the rule of law and the constitutional state, an attempt to bridge normative and empirical approaches to democracy, and an account of the social context required for democracy. Finally, the work frames and caps these arguments with a bold proposal for a new paradigm of law that goes beyond the dichotomies that have afflicted modern political theory from its inception and that still underlie current controversies between so-called liberals and civic republicans. The book includes a postscript written in 1994, which restates the argument in light of its initial reception, and two appendixes, which cover key developments that preceded the book. Habermas himself was actively involved in the translation, adapting the text as necessary to make it more accessible to English-speaking readers. (shrink)

This book provides essential reading for anyone with an academic or professional interest in business ethics today.

The Civilizing Process stands out as Norbert Elias' greatest work, tracing the 'civilizing' of manners and personality in Western Europe since the Middle Ages, and showing how this was related to the formation of states and the monopolization of power within them. It comprises the two volumes originally published in English as The History of Manners and State Formation and Civilization, now, in a single volume, the book is restored to its original format and made available world-wide to a new (...) generation of readers.In this new edition, the original text is extensively revised, corrected, and updated. The Revised Edition reveals anew and afresh the greatness of Elias' masterpiece. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The takenforgrantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

"This book is a sorely needed corrective. Animal Spirits is an important--maybe even a decisive--contribution at a difficult juncture in macroeconomic theory.

A political and philosophical manifesto considers the ramifications of a world in which Western society is divided from other cultures, evaluating the limited capacity of differentiating societies as compared to the power of a united world.

The aim of this article is to present the dynamics of the structure of human action to enable us to link the organizational level of institutions, norms, and culture of the firm. At the organizational level, the existing institutions and culture are the confines of our individual action. However, at the individual level, we focus on the external consequences of our acts. It is our acts that maintain social institutions and culture. The ethics of personal virtues demands an ethics of (...) institutions, the ethics which deals with the institutional means of realizing individual ends. All individuals choose courses of action by deciding what type of life is worth living. In this view, virtue (arete) occupies a central position, defining the paradigm that each society with its institutions and norms sets as the model of life to be lived (eudiamonia). (shrink)

ABSTRACT:The purpose of this paper is to critically evaluate the instrumental perspective on Corporate Social Responsibility (CSR) in practice and theory by relying on sociological analyses of a well known organization: the Italian Mafia. Legal businesses might share features of the Mafia, such as the propensity to exploit a governance vacuum in society, a strong organizational identity that demarcates the inside from the outside, and an extreme profit motive. Instrumental CSR practices have the power to accelerate a firm's transition to (...) Mafia status through its own pathologies. The boundaries of such instrumentalism are explored and lessons for future CSR research derived, with specific emphasis on a firm's social and normative embeddedness, taking into account the inherent challenge of regulating corporate behaviour in the global economy. (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)

Introduction : changing forms of global order. Towards a multipolar world ; The paradox of our times ; Economic liberalism and international market integration ; Security ; The impact of the global financial crisis ; Shared problems and collective threats ; A cosmopolitan approach ; Democratic public law and sovereignty ; Summary of the book ahead -- Cosmopolitanism : ideas, realities and deficits. Globalization ; The global governance complex ; Globalization and democracy : five disjunctures ; Cosmopolitanism : ideas and (...) trajectories ; Cosmopolitan realities ; Addressing the institutional deficit : reframing the market -- Principles of cosmopolitan order. Cosmopolitan principles ; Thick or thin cosmopolitanism? ; Cosmopolitan justifications ; From cosmopolitan principles to cosmopolitan law -- Cosmopolitan law and institutional requirements. The idea of cosmopolitan law ; Institutional requirements ; In sum ; Political openings -- Violence, law and justice in a global age. Reframing human activity : international law, rights and responsibilities ; 9/11, war and justice ; Islam, the Kantian heritage and double standards ; Concluding reflections -- Reframing global governance : apocalypse soon or reform!. The paradox of our times ; Why be concerned with global challenges? ; Deep drivers and governance challenges ; Global governance : contemporary surface trends ; Problems and dilemmas of global problem-solving ; Strengthening global governance ; Global governance and the democratic question ; Multilevel citizenship, multilayered democracy -- Parallel worlds : the governance of global risks in finance, security and the environment. Global governance and the paradox of our times ; The global governance of finance ; The global governance of security ; The global governance of the environment ; Conclusion : crisis, politicization and reform -- Democracy, climate change and global governance. Democracy I : the democratic nation-state and climate change ; Democracy II : global governance and climate change ; The policy debate : squaring the circle? ; The political elements of a democratic global deal ; Democracy and the policy menu ahead. (shrink)

Critics of SRI have said little about the integrity of corporate representations resulting in screening inclusion or exclusion. This is surprising given social and environmental accounting research that finds corporate posturing and deception in the absence of external verification, and a parallel body of literature describing corporate "greenwashing" and other forms of corporate disinformation. In this paper I argue that the problems and challenges of ensuring fair and accurate corporate social reporting mirror those accompanying corporate compliance with law. Similarities and (...) points of convergence between social reporting and corporate compliance are discussed, along with proposals for reform. (shrink)

There is not, of course, a one-to-one relation between policy conclusions and the conclusions of positive economics; if there were, there would be no ...

The purpose of this paper is to enter the conversation about stakeholder theory with the goal of clarifying certain foundational issues. I want to show, along with Boatright, that there is no stakeholder paradox, and that the principle on which such a paradox is built, the Separation Thesis, is nicely self-serving to business and ethics academics. If we give up such a thesis we find there is no stakeholder theory but that stakeholder theory becomes a genre that is quite rich. (...) It becomes one of many ways to blend together the central concepts of business with those of ethics. Rather than take each concept of business singly or the whole of “business” together and hold it to the light of ethical standards, we can use the stakeholder concept to create more fine-grained analyses that combine business and ethics; or more simply, we can tell many more, and more interesting, stories about business. (shrink)

This paper argues that moral thinking is an essential management capability which strengthens organizations and contributes to theirperformance in the marketplace. The paper explains what moral thinking is, and addresses the most common reasons for considering it inappropriate or irrelevant to managerial practice. The argument provides a compelling rationale for the corporate ethics initiatives undertaken in recent years.

The use of agency theory remains highly controversial among business ethicists. While some regard it as an essential tool for analyzing and understanding the recent spate of corporate ethics scandals, others argue that these scandals might not even have occurred had it not been for the widespread teaching of agency theory in business schools. This paper presents a qualified defense of agency theory against these charges, first by identifying the theoretical commitments that are essential to the theory (in order to (...) distinguish between agency theory itself and certain incorrect interpretations that have been widely promulgated), and second, by specifying more clearly the different ways that agency theory can be used to analyze relations within the firm. The recommendation that follows from this analysis is that agency theory be used as a critical-diagnostic tool, to identify the points at which both firms and markets will be vulnerable to breakdown in the absence of moral constraint. (shrink)

The classical view of "rational man" as the unit of analysis for economic behavior and marketplace exchange has been changed by the late twentieth century with the help of behavioral economics that considers predictable irrationality as a normal mode of behavior. Instead of revising neoclassical economics to fit contemporary economic crises, it is recommended to follow Adam Smith's original concerns for the social setting of individual behavior and to treat economic crises with pragmatic flexibility rather than with dogmatic ideology.

In these two important lectures, distinguished political philosopher Seyla Benhabib argues that since the UN Declaration of Human Rights in 1948, we have entered a phase of global civil society which is governed by cosmopolitan norms of universal justice--norms which are difficult for some to accept as legitimate since they are sometimes in conflict with democratic ideals. In her first lecture, Benhabib argues that this tension can never be fully resolved, but it can be mitigated through the renegotiation of the (...) dual commitments to human rights and sovereign self-determination. Her second lecture develops this idea in detail, with special reference to recent developments in Europe (for example, the banning of Muslim head scarves in France). The EU has seen the replacement of the traditional unitary model of citizenship with a new model that disaggregates the components of traditional citizenship, making it possible to be a citizen of multiple entities at the same time. The volume also contains a substantive introduction by Robert Post, the volume editor, and contributions by Bonnie Honig (Northwestern University), Will Kymlicka (Queens University), and Jeremy Waldron (Columbia School of Law). (shrink)

The Greek philosopher Aristotle, writing over two thousand years before Wall Street, called people who engaged in activities which did not contribute to society "parasites." In his latest work, renowned scholar Robert C. Solomon asserts that though capitalism may require capital, but it does not require, much less should it be defined by the parasites it inevitably attracts. Capitalism has succeeded not with brute strength or because it has made people rich, but because it has produced responsible citizens and--however unevenly--prosperous (...) communities. It cannot tolerate a conception of business that focuses solely on income and vulgarity while ignoring traditional virtues of responsibility, community, and integrity. Many feel that there is too much lip-service and not enough understanding of the importance of cooperation and integrity in corporate life. This book rejects the myths and metaphors of war-like competition that cloud business thinking and develops an "Aristotelean" theory of business. The author's approach emphasizes several core concepts: the corporation as community, the search for excellence, the importance of integrity and sound judgment, as well as a more cooperative and humane vision of business. Solomon stresses the virtues of honesty, trust, fairness, and compassion in the competitive business world, and confronts the problem of "moral mazes" and what he posits as its solution--moral courage. (shrink)

This book reformulates the sociological subdiscipline known as the sociology of knowledge. Knowledge is presented as more than ideology, including as well false consciousness, propaganda, science and art.

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)

: 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)

The Principles of Corporate Governance require that business conduct conform to the law. In recent years, news reports of business misconduct have cast doubt on a conclusion that conformity is the prevalent practice. This article explores the influence of law on business conduct by comparing the law’s requirements and purposes with actual business conduct in the market. Specifically, it explores whether certain legal regimes are more effective than others in inducing greater commitment to legal compliance by corporate actors. The conclusion (...) drawn is that the prevalent legal regime – a vague common law or legislative mandate – is typically associated with corporate conduct that evades or ignores the law’s mandate or its underlying purpose. (shrink)

It is common for organizational theorists as well as business practitioners to speak of an organization''s visions, strategies, goals and responsibilities. This implies that collectivities have competencies normally attributed to individuals, i.e. to reflect, evaluate, learn and make considered choices. The article provides a series of reflections on the concept of consciousness in an organizational context. It is argued that, under certain conditions, it is both meaningful and efficacious to ascribe the competency for conscious and intentional behavior to organizations. The (...) arguments provided are based on empirical observations, common sense and deductive reasoning. (shrink)

This article explores the structure of world order fromthe perspective of the Treaty of Westphalia, which is treated asthe benchmark for the emergence of the modern system of sovereignstates. Emphasis is placed on Westphalia as historical event, ideaand ideal, and process of evolution, and also on developments thatsupersede this framing of world politics, especially, globalizationand the megaterrorist challenge of September 11, 2001. At issue is whether the state system is resilient enough to adapt to new globalconditions or is in the (...) process of being supplanted, and whether thesequel to Westphalia is moving toward humane global governance orsome dysutopic variant, or both at once. (shrink)

The primary aim of this paper is to accentuate those features that distinguish Levinasian ethics from the egoism that prevails in management thought. It focuses on differences in the constitution of the subject, how Levinas seeks an ethics that goes beyond the subjective point of view that structures the self as being self-present, self-interested, free and systematic and relates to others through this perspective. Levinas's concepts are critically discussed by reading these alongside Jacques Lacan and Adam Smith, which enable observations (...) to be made about Levinas's concept of the Same and about the difference he effects between human and the nonhuman. It is concluded that it can be easy to misread Levinas in key respects in ways that may act to assimilate his thought to egoism. (shrink)

The thirty-five chapters in this book describe various judgmental heuristics and the biases they produce, not only in laboratory experiments but in important...

Systems of private regulation based on certification have recently emerged to address environmental issues in the forest products industry and labor issues in the apparel industry. To explain why the same regulatory form has emerged across these fields, the author uses a historical and comparative case study approach, closely examining early moments and paying attention to “roads not taken.” Two types of factors led to the initial emergence of private certification: social movement campaigns targeting companies and a neo-liberal institutional context. (...) The analysis shows specific ways in which these factors led states, nongovernmental organizations, and companies to build or support certification associations. (shrink)

As the world is getting increasingly connected and interdependent it becomes clear that the world’s most pressing public problems such as poverty or global warming call for cross-sector solutions. The paper discusses the idea of business leaders acting as agents of world benefit, taking an active co-responsibility in generating solutions to problems. It argues that we need responsible global leaders who are aware of the pressing problems in the world, care for the needs of others, aspire to make this world (...) a better place, and act in word and deed as global and responsible citizens. The argument is structured as follows: first, in highlighting some leadership challenges we discuss why it takes a responsible, global, and ultimately cosmopolitan mindset to enhance human values on a global scale. Second, we define more specifically responsible global leadership and the (potential) role of business leaders acting as agents of world benefit. Third, drawing on latest research on cosmopolitanism, we discuss the hallmarks of contemporary cosmopolitanism. Fourth, and concluding our argument, we propose key cosmopolitan business principles to help leaders build a more inclusive world. (shrink)

Applying evidence from recently available public information on Enron, I defined Enron’s culture as one rooted in agency theory by asserting that Enron’s members were predominantly agency-reasoning individuals. I then identified conditions present at Enron’s collapse: a strong agency culture with collectively non-compliant norms, a munificent rare-failure environment, and new hires with little business ethics training. Turning to four possible antidotes (selection, objectivist integrity, integrity capacity, and stewardship reasoning) to an agency culture under these conditions, I argued that the currently (...) available ethics literature would have made little difference toward averting Enron’s collapse if any of the recommendations from the relevant ethics literature had been implemented. I conclude by identifying new directions for business ethics literature in order to make it more implementable under the conditions identified at Enron. Essentially, we need a way to clearly determine (1) the difference between connivance and commitment, (2) what is meant by balance with regard to the multiple dimensions of ethics and legal theories, and (3) the proper balance between agency and stewardship reasoning. (shrink)

In this paper we present six criteria for assessing proposed solutions to environmental risk problems. To assess the final criterion-the criterion of ethical responsibility-we suggest another series of criteria. However, before these criteria can be used to address ethical problems, business persons must be wiIling to discuss the problem in ethical terms. Yet many decision makers are unwilling to do so. Drawing on research by James Waters and Frederick Bird, we discuss this “moral muteness”-the inability or unwillingness to use morallanguage (...) to solve moral problems-and suggest some underlying causes of moral muteness. (shrink)