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)

Various authors advocate consideration of stakeholder value concerns in organizational decision making. Brenner and Cochran (1990, 1991) propose a stakeholder theory of the firm which contains several propositions and a stakeholder value matrix. In order to begin any stakeholder rnodel validation, an approach is needed to measure stakeholder value and influence weights. We propose a multicriteria decision modeling approach, utilizing the analytic hierarchy process, to estimate stakeholder value matrix weights. This approach is illustrated using a simplified example and suggestions are (...) made regarding the process needed to begin to validate the stakeholder theory of the firm. (shrink)

Insider trading is illegal, and is widely believed to be unethical. It has received widespread attention in the media and has become, for some, the very symbol of ethical decay in business. For a practice that has come to epitomize unethical business behavior, however, insider trading has received surprisingly little ethical analysis. This article critically examines the principal ethical arguments against insider trading: the claim that the practice is unfair, the claim that it involves a misappropriation of information and the (...) claim that it harms ordinary investors and the market as a whole. The author concludes that each of these arguments has some serious deficiencies; no one of them by itself provides a sufficient reason for outlawing insider trading. This does not mean, however, that there are no reasons for prohibiting the practice. The author argues that the real reason for outlawing insider trading is that it undermines the fiduciary relationship that lies at the heart of American business. (shrink)

This article challenges an argument from Tom Donaldson''s recent bookThe Ethics of International Business with a claim that distributive justice, deemed in many circles to impose a duty of mutual aid on individuals and nations, establishes a basis for holding multinational corporations to such a duty as well. The root idea I advocate is that Rawls'' theory of justice can be deployed — beyond its original intent yet in line with its spirit — to underwrite aprima facie obligation of international (...) business to render aid to ameliorate suffering on behalf of the inhabitants of developing countries in which they operate. (shrink)

This paper presents an analysis of bluffing in labor negotiations from legal, economic, and ethical perspectives. It is argued that many forms of bluffing in labor negotiations are legal and economically advantageous, but that they typically constitute lying. Nevertheless it is argued that it is generally morally acceptable to bluff given a typical labor-management relationship where one's negotiating partner is familiar with and most likely employing bluffing tactics him/herself. We also consider whether it is an indictment of our present negotiating (...) practices and our economic system as a whole that, given the harsh realities of the marketplace, bluffing is usually morally acceptable. (shrink)

Raz's method is as unusual, and as admirable, as the substance of his sometimes rather unfortunately labeled "perfectionist liberalism"—unfortunate because "it is not perfectionist in the more ordinary sense of the term" in that it recognizes that "imperfect ways of life may be the best which is possible for people" and "is strongly pluralistic", while understanding its fundamental value of well-being as the active and autonomous making of a life of one's own. Raz's approach is simultaneously alert to the complexity (...) of argument, to a degree that practitioners of practical ethics sometimes are not, and aware of the limits of theorizing, as devotees of theoretical ethics rarely are. Thus, while scorning "supermarket liberalism" and rejecting, in company with Rawls, "hand-to-mouth piecemeal intuitionism", Raz also doubts whether ideal theory in the Rawlsian mode is "a meaningful enterprise", emphasizing wisely, in my judgment, that "not everything we know can be exhaustively stated in the abstract". The "dense webs of complex actions and interactions" that give meaning to our lives "defy explicit learning or comprehensive articulation. They are available only to those who have or can acquire practical knowledge of them, that is, knowledge embodied in social practices and transmitted by habituation". (shrink)

A vigorous debate has developed surrounding electronic surveillance in the workplace. This controversial practice is one element of the more general issues of employee dignity and management control, revolving around the use of polygraph and drug testing, integrity exams, and the like. Managers, under pressure from competitors, are making greater use of technologically advanced employee monitoring methods because they are available, and hold the promise of productivity improvement. In this paper, the context of electronic surveillance is described and analyzed from (...) the perspectives of ethics, public policy, and managerial behavior. (shrink)

During the last decade, there has been a wave of mergers and hostile takeovers throughout the corporate world. This wave has been accompanied by various defensive strategies of managers to defend target firms from these takeovers. These include: greenmail, golden parachutes, and leveraged management buyouts. This paper examines hostile takeovers and defenses against them from a stakeholder point of view; that is, from a consideration of the various obligations a firm has to the different groups that have a stake in (...) the firm. I conclude that many stakeholders, such as workers and communities, have unjustly suffered as a result of hostile takeovers and the associated defenses, and that their rights as stakeholders have been violated. Finally, I suggest some possible reforms to protect these stakeholders in the future. (shrink)

Ethical guidelines for multinational corporations are included in several international accords adopted during the past four decades. These guidelines attempt to influence the practices of multinational enterprises in such areas as employment relations, consumer protection, environmental pollution, political participation, and basic human rights. Their moral authority rests upon the competing principles of national sovereignty, social equity, market integrity, and human rights. Both deontological principles and experience-based value systems undergird and justify the primacy of human rights as the fundamental moral authority (...) of these transnational and transcultural compacts. Although difficulties and obstacles abound in gaining operational acceptance of such codes of conduct, it is possible to argue that their guidelines betoken the emergence of a transcultural corporate ethic. (shrink)

The claim that " Everyone's doing it" is frequently offered as a reason for engaging in behavior that is widespread but less-than-ideal. This is particularly true in business, where competitors' conduct often forces hard choices on managers. When is the claim " Everyone's doing it" a morally valid reason for following others' lead? This discussion proposes and develops five prima facie conditions to identify when the existence of prevalent but otherwise undesirable behavior provides a moral justification for our engaging in (...) such behavior ourselves. The balance of the discussion focuses on testing these conditions by applying them to aseries of representative cases in business ethics. (shrink)

Despite the fact that a number of economists and philosophers of late defend insider trading both as a viable and useful practice in a free market and as not immoral, I shall question the value of insider trading both from a moral and an economic point of view. I shall argue that insider trading both in its present illegal form and as a legalized market mechanism undermines the efficient and proper functioning of a free market, thereby bringing into question its (...) own raison d'etre. It does so and is economically inefficient for the very reason that it is immoral. Thus this practice cannot be justified either from an economic or a moral point of view. Insider trading is the reverse of speculation. It is reward without risk, wealth generated — and injury done to others — by an unfair advantage in information ... [T]he core principle is clear: no one should profit from exploitation of important information not available to the public. (shrink)

In a recent important book,The Ethics of International Business, Tom Donaldson argues that multinational corporations (as well as individuals and nationstates) must, at a minimum, respect international human rights. For a purported right to be such a fundamental right it must satisfy three conditions. Donaldson calls the third condition the fairness-affordability condition. The affordability part of this condition holds that moral agents must be capable of paying for the burdens and responsibilities that a proposed human right would impose. If this (...) is impossible, then the purported right is not an international human right.I argue that Donaldson''s affordability condition is subject to four objections which reveal its untenability as one of the conditions upon which identification of international human rights must rest. I offer another way of treating problems of affordability and capability when it comes to such rights that all moral agents must respect. (shrink)

Establishing a cosmopolitan ethical culture for a multinational company requires special effort above and beyond that needed for standard domestic ethics initiatives. This articles discusses some of the perils and prospects involved in international corporate ethics programs, and recommends some key guiding principles.

Competing schools of contemporary jurisprudence can be “internationalized” to elucidate special problems in interpreting obligations of multinational firms under emergent corporate and international codes. An “integrity” model proves superior to a relativist conception of international business precepts. An integrity jurisprudence provides a coherent vision of a globaI rule-of-law and ethics-of-principle for the world community’s rights correlative to MNC obligations while accomodating the indeterminate and contestable nature of interpretations of such textually-based directives.