This article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

Anwander questions "the role that Pogge assigns to benefiting from injustice in the determination of our duties toward the victims of injustice... challenging his claim that there is a negative duty not to benefit from injustice.".

Many social philosophers and ethicists contend that a modern society cannot remain stable merely by its citizens obeying all of its rules. Such prominent theoreticians as J. Habermas, J. Rawls, D. Gauthier or R. Rorty hold the view that the citizens of a modern society must exhibit additional anthropological qualities which are termed moral surpluses here. Christoph Lütge argues, however, that no moral surplus is immune to erosion by systematic counter-incentives and that anthropological qualities in general cannot serve as a (...) basis for ethics in the globalized world. An order ethics, which is based on weaker prerequisites, namely the characteristics of situations and their basic conditions (orders), is more likely to count on cross-cultural approval in the era of globalization. (shrink)

A renowned economist's classic book on capitalism in the developing world, showing how property rights are the key to overcoming poverty "The hour of capitalism's greatest triumph," writes Hernando de Soto, "is, in the eyes of four-fifths of humanity, its hour of crisis." In The Mystery of Capital, the world-famous Peruvian economist takes up one of the most pressing questions the world faces today: Why do some countries succeed at capitalism while others fail? In strong opposition to the popular view (...) that success is determined by cultural differences, de Soto finds that it actually has everything to do with the legal structure of property and property rights. Every developed nation in the world at one time went through the transformation from predominantly extralegal property arrangements, such as squatting on large estates, to a formal, unified legal property system. In the West we've forgotten that creating this system is what allowed people everywhere to leverage property into wealth. This persuasive book revolutionized our understanding of capital and points the way to a major transformation of the world economy. (shrink)

Thomas Pogge tries to explain the attitude of affluent populations to world poverty. One or two per cent of the wealth of the richer nations could help in eradicating much of the poverty and Pogge presents a powerful moral argument.

Ethical theories have been largely focused on finding and clarifying certain amoral principles. However fruitful the communication of moral principles for providing orientation in modern society might be, a serious omission has been made in that the problem of implementation is not addressed. Two fundamental question have neither been raised nor answered: Why should self‐interested individuals follow the proposed moral principles in their daily conduct? Are societal institutions of such a design that is in the power of the individuals to (...) follow these moral principles? It is shown in this article that an economic theory of morals does systematically address these two questions and therefore provides a firm basis for discussing the possibilities and boundaries of following the moral principles inherent in the long history of moral philosophy. (shrink)

Ethical theories have been largely focused on finding and clarifying certain amoral principles. However fruitful the communication of moral principles for providing orientation in modern society might be, a serious omission has been made in that the problem of implementation is not addressed. Two fundamental question have neither been raised nor answered: (1) Why should self‐interested individuals follow the proposed moral principles in their daily conduct? (2) Are societal institutions of such a design that is in the power of the (...) individuals to follow these moral principles? It is shown in this article that an economic theory of morals does systematically address these two questions and therefore provides a firm basis for discussing the possibilities and boundaries of following the moral principles inherent in the long history of moral philosophy. (shrink)

Germany is considered to be a pioneer of social security systems; nonetheless, globalization and demographic changes have put enormous pressure on them. A solution is not yet in sight as the debate on the future of the German social security systems still lacks consensus. We argue that ideas matter and that the debate can benefit from a deeper reflection on the concept of social security. This objective is pursued along two lines. First, we take a historical perspective and reconstruct the (...) development of Germany's social security systems. Second, we scrutinize from a theoretical perspective how social security is conceptualized in public and theoretical debates. Behind the various positions, we identify four basic ideal types. We then analyze how these ideal types account for the benefits of social security systems and what role they assign to corporations in providing social security. While two ultimately reinforce potential conflicts between different groups in society, the other two ideal types reveal possible benefits for all. The last ideal type actually conceptualizes social security systems as insurance that fosters risky but overall productive investments in human and other forms of capital. Therefore, it can be shown that social security systems are not necessarily threatened by globalization and that incentives exist for corporations to invest in the provision of social security. (shrink)

One-third of all human lives end in early death from poverty-related causes. Most of these premature deaths are avoidable through global institutional reforms that would eradicate extreme poverty. Many are also avoidable through global health-system reform that would make medical knowledge freely available as a global public good. The rules should be redesigned so that the development of any new drug is rewarded in proportion to its impact on the global disease burden (not through monopoly rents). This reform would bring (...) drug prices down worldwide close to their marginal cost of production and would powerfully stimulate pharmaceutical research into currently neglected diseases concentrated among the poor. Its feasibility shows that the existing medical-patent regime (trade-related aspects of intellectual property rights—TRIPS—as supplemented by bilateral agreements) is severely unjust—and its imposition a human-rights violation on account of the avoidable mortality and morbidity it foreseeably produces. (shrink)

In this article, Satz critiques "both Pogge's use of the causal contribution principle as well as his attempt to derive all of our obligations to the global poor from the need to refrain from harming others.".

A central theme throughout Thomas Pogge's pathbreakingWorld Poverty and Human Rightsis that the global political and economic orderharmspeople in developing countries, and that our duty toward the global poor is therefore not to assist them but torectify injustice. But does the global orderharmthe poor? I argue elsewhere that there is a sense in which this is indeed so, at least if a certain empirical thesis is accepted. In this essay, however, I seek to show that the global order not only (...) does not harm the poor but can plausibly be credited with the considerable improvements in human well-being that have been achieved over the last 200 years. Much of what Pogge says about our duties toward developing countries is therefore false. (shrink)

Despite a high and growing global average income, billions of human beings are still condemned to lifelong severe poverty, with all its attendant evils of low life expectancy, social exclusion, ill health, illiteracy, dependency, and effective enslavement. This problem is solvable, despite its magnitude.

One important aspect of globalization is the increasingly dense and influential regime of global rules that govern and shape interactions everywhere. Covering trade, investment, loans, patents, copyrights, trademarks, labor standards, environmental protection, use of seabed resources, production and marketing of weapons, maintenance of public security, and much else, these rules—structuring and enabling, permitting and constraining—have a profound impact on the lives of human beings and on the ecology of our planet. It is therefore important to think carefully, in moral terms, (...) about their design. (shrink)

In this article, the last in the symposium on world poverty and human rights, Pogge replies to his critics Mathias Risse, Alan Patten, Rowan Cruft, Norbert Anwander, and Debra Satz.

In a democratic society, the social rules are imposed by all upon each. As “recipients” of the rules, we tend to think that they should be designed to engender the best attainable distribution of goods and ills or quality of life. We are inclined to assess social institutions by how they affect their participants. But there is another, oft-neglected perspective which the topic of health equity raises with special clarity: As imposers of the rules, we are inclined to think that (...) harms we inflict through the rules have greater moral weight than like harms we merely fail to prevent or to mitigate. What matters morally is not merely how we affect people, but how we treat them through the rules we impose. While current (consequentialist and Rawlsian) theorizing is dominated by the first perspective and thus supports purely recipient-oriented moral conceptions, an adequate approach to social justice requires a balancing of both. Such balancing results in a relational conception of justice, which distinguishes various ways in which an institutional scheme may causally affect the quality of life of its participants.This essay argues that the strength of our moral reason to prevent or mitigate particular medical conditions depends not only on what one might call distributional factors, such as how badly off the people affected by these conditions are in absolute and relative terms, how costly prevention or treatment would be, and how much patients would benefit from given treatment. Rather, it depends also on relational factors, that is, on how we are related to the medical conditions they suffer. It then discusses some implications of this view for understanding responsibilities for international health outcomes. (shrink)

One‐third of all human deaths are due to poverty‐related causes, to malnutrition and to diseases that can be prevented or cured cheaply. Yet our politicians, academics, and mass media show little concern for how such poverty might be reduced. They are more interested in possible military interventions to stop human rights violations in developing countries, even though such interventions – at best – produce smaller benefits at greater cost. This Western priority may be rooted in self‐interest. But it engenders, and (...) is sustained by, a deeply flawed moral presentation of global economic cooperation. The new global economic order we impose aggravates global inequality and reproduces severe poverty on a massive scale. On any plausible understanding of our moral values, the prevention of such poverty is our foremost responsibility. (shrink)

This article develops an "ordonomic" approach to business ethics in the age of globalization. Through the use of a three-tiered conceptual framework that distinguishes between the basic game of antagonistic social cooperation, the meta game of rule-setting, and the meta-meta game of rule-finding discourse, we address three questions, the answers to which we believe are crucial to fostering effective business leadership and corporate social responsibility. First, the purpose of business in society is value creation. Companies have a social mandate to (...) organize mutually advantageous cooperation. Second, business ethics should teach the management competencies necessary to fulfill business's societal mandate. These competencies are optimization competence in the basic game of value creation, governance competence in the meta game of (political) rule setting, and the three discourse-related skills of orientation competence, reception competence, and communication competence necessary for engaging in the meta-meta game. Third, companies can help solve global problems through global corporate citizenship if they participate as political and moral actors in rule-setting processes and rule-finding discourse aimed at laying the foundation for value creation on a global scale. (shrink)

ABSTRACTThis article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

This article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

According to what Patten calls the "need-based" view, "we have a very strong and extensive set of duties to come to the assistance of the global poor: duties that are grounded in the neediness of the poor.".

On 10 December 1948, the General Assembly ofthe United Nations adopted and proclaimed the Universal Declaration of Human Rights, a truly historic document, the full text of which is reproduced here. Following this historic act, the Assembly called upon all Member countries to publicize the text of the Declaration and "to cause it to be disseminated, displayed, read and expounded principally in schools and other educational institutions, without distinction based on the political status of countries or territories." Jacques Maritain was (...) actively involved in the drafting of the Declaration, especially its clauses regarding freedom of conscience and religious expression. (shrink)

Many traditional conceptions of ethics use categories and arguments that have been developed under conditions of pre-modern societies and are not useful in the age of globalisation anymore. I argue that we need an economic ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. This conception is then elaborated further in the area of business ethics. It is illustrated in the case for banning child labour.

Alliances and other forms of cooperation between firms often promise great benefits, for example, by the exchange of knowledge or co-specialization of resources. At the same time, the necessary actions to realize these benefits can augment vulnerability to opportunistic behaviour of partners. In addition to formal contracts to mitigate the resulting behavioural uncertainties, often, mechanisms, such as reputation or ethical values, are suggested as important supplements. However, when it comes to assessment of a specific cooperation opportunity, it is difficult to (...) account systematically for the economic consequences of these 'softer factors'. Therefore, this paper aims to surpass mere financial analysis of chance and risk and to integrate systematically both reputation and ethical values into an economic assessment of cooperative relationships. For this purpose, we develop a theoretical framework that is based on a simple-decision model to account for reputation and ethical values of potential partners as drivers of behavioural uncertainty reduction. We also discuss how this framework can be used to assess cooperative relationships and illustrate these ideas with reference to the inter-organizational accounting practices of a large drugstore chain and its suppliers. (shrink)

Alliances and other forms of cooperation between firms often promise great benefits, for example, by the exchange of knowledge or co‐specialization of resources. At the same time, the necessary actions to realize these benefits can augment vulnerability to opportunistic behaviour of partners. In addition to formal contracts to mitigate the resulting behavioural uncertainties, often, mechanisms, such as reputation or ethical values, are suggested as important supplements. However, when it comes to assessment of a specific cooperation opportunity, it is difficult to (...) account systematically for the economic consequences of these ‘softer factors’. Therefore, this paper aims to surpass mere financial analysis of chance and risk and to integrate systematically both reputation and ethical values into an economic assessment of cooperative relationships. For this purpose, we develop a theoretical framework that is based on a simple‐decision model to account for reputation and ethical values of potential partners as drivers of behavioural uncertainty reduction. We also discuss how this framework can be used to assess cooperative relationships and illustrate these ideas with reference to the inter‐organizational accounting practices of a large drugstore chain and its suppliers. (shrink)

Analyzes the nature of international disagreements and conflict resolution in terms of game theory and non-zero-sum games.

Employing the techniques of modern economic analysis, Professor Buchanan reveals the conceptual basis of an individual's social rights by examining the ...

This study provides a representation of the broad spectrum of theoretical work on topics related to business ethics, with a particular focus on corporate citizenship. It considers relations of business and society alongside social responsibility and moves on to examine the historical and systemic foundations of business ethics, focusing on the concepts of social and ethical responsibilities. The contributors explore established theories and concepts and their impact on moral behaviour. Together, the contributions offer varied philosophical theories in approaches to business (...) ethics. The book will be a valuable resource for academics and researchers with an interest in the theoretical development of business ethics. -/- Reviews: 'The rapidly expanding business ethics field is often populated by thinly theorised work. This book is a welcome exception. It is also distinctive in that it embraces a clear macro perspective whereas much of the debate is rather stuck at the level of the individual or the organisation. As such the book has a distinctively European flavour and should be considered as an intellectually stimulating collection offering original perspectives on business ethics.' Laura J. Spence, Royal Holloway, University of London, UK -/- 'This book makes an important contribution to our knowledge and understanding of corporations especially in the areas of corporate citizenship and responsibility as well as ethics and economic ethics. In addition the relationship of these areas with the social contract is well argued.' Australian Journal of Corporate Law. (shrink)

In the new millennium, the Western aid effort towards Africa has surged due to writings by well-known economists, a celebrity mass advocacy campaign, and decisions by Western leaders to make Africa a major foreign policy priority. This survey contrasts the predominant "transformational" approach (West saves Africa) to occasional swings to a "marginal" approach (West takes one small step at a time to help individual Africans). Evaluation of "one step at a time" initiatives is generally easier than that of transformational ones (...) either through controlled experiments (although these have been much oversold) or simple case studies where it is easier to attribute outcomes to actions. We see two themes emerge from the literature survey: (1) escalation. As each successive Western transformational effort has yielded disappointing results, the response has been to try an even more ambitious effort. (2) the cycle of ideas. Rather than a progressive testing and discarding of failed ideas, we see a cycle in aid ideas in many areas in Africa, with ideas going out of fashion only to come back again later after some lapse long enough to forget the previous disappointing experience. Both escalation and cyclicality of ideas are symptomatic of the lack of learning that seems to be characteristic of the "transformational" approach. In contrast, the "marginal" approach has had some successes in improving the well-being of individual Africans, such as the dramatic fall in mortality. (shrink)

Based on economic ethics, this paper reflects on and aims to improve the semantics of responsibility. The traditional concept of responsibility is threatened with erosion when responsibility is attributed to an actor who is unable to exercise individual control over the outcome of his actions. In the modern world-society this is increasingly the case. The concept of ordo-responsibility is helpful in identifying a suitable approach for the attribution and acceptance of responsibility. The perspective of economic ethics systematically differentiates between the (...) initial basic game of business and the related meta-games of politics and public discourse. In this way, the focus shifts to the rule-setting processes and rule-finding discourses for which the actors can accept governance responsibility and discourse responsibility, respectively. These two forms of ordo-responsibility demonstrate a characteristic which is extremely important for processes of New Governance: they can be attributed to corporative actors, and they can be perceived by them in their own well-reflected interests. (shrink)

In recent years, the responsibility of corporations has been widely discussed. However, there is no general agreement as regards what CSR is exactly. Due to the indefinite nature of CSR, the term actually embraces several ideas and different contents. A very widespread understanding of CSR defines the subject as (strategic) corporate philanthropy, including operations such as corporate giving, corporate volunteering, corporate foundations, etc. The philanthropic approach to CSR implies that corporations must take responsibility beyond their core business activities. This article (...) argues that a philanthropic approach to CSR is problematic. Moreover, such a conceptualisation strengthens the perception that making Profits is immoral; therefore, it endangers the basis of corporations' license-to-operate in the long run. (shrink)