For several decades, business has operated according to the tenets of neoclassical economic theory, where the primary obligation of corporations is to maximize profit for shareholders. However, the larger social mandate for business has changed, represented by the rise of language such as "sustainable development", "corporate social responsibility" (CSR) and "stakeholder groups." Nevertheless, the theoretical shift implied by the use of such language has not occurred. Issues of sustainable development and CSR continue to be justified in the terms of neoclassical (...) economic theory through the rationalization of "doing well by doing good".Within this economic paradigm, CSR cannot move beyond enlightened self-interest (acting in socially responsible ways in order to further one''s own ends) because all behavior must be justified economically. This implies that corporate socially responsible behavior will simply cease when it becomes uneconomic, regardless of the impact on interrelated systems which in turn will re-impact the business realm. (shrink)

This paper offers directions for the continuing dialogue between business ethicists and environmental philosophers. I argue that a theory of corporate social responsibility must be consistent with, if not derived from, a model of sustainable economics rather than the prevailing neoclassical model of market economics. I use environmental examples to critique both classical and neoclassical models of corporate social responsibility and sketch the alternative model of sustainable development. After describing some implications of this model at the level of individual firms (...) and industries, I offer an ethical justification of the sustainability alternative that is derived from the same values that underlie traditional market economics. (shrink)

Mining companies in Australia are increasingly required to interact with Indigenous groups as stakeholders following Native Title legislation in the early 1990s. A study of five mining companies in Australia reveals that they now undertake a range of programs involving Indigenous communities, to assist with access to land, and to enhance their public profile. However, most of these initiatives emanate from carefully quarantined sections of mining companies. Drawing upon cross-cultural and diversity research in particular, this paper contends that only initiatives (...) that strive towards power sharing with Indigenous groups and strategies for broadening the organizational interface with Indigenous groups, will contribute to more ethical practices in mining and other companies. (shrink)

Combining principles of individual rational choice with a sociological conception of collective action, James Coleman recasts social theory in a bold new way. The result is a landmark in sociological theory, capable of describing both stability and change in social systems. This book provides for the first time a sound theoretical foundation for linking the behavior of individuals to organizational behavior and then to society as a whole. The power of the theory is especially apparent when Coleman analyzes corporate actors, (...) such as large corporations and trade unions. He examines the creation of these institutions, collective decision making, and the processes through which authority is revoked in revolts and revolutions. Coleman discusses the problems of holding institutions responsible for their actions as well as their incompatibility with the family. He also provides a simple mathematical analysis corresponding to and carrying further the verbal formulations of the theory. Finally, he generates research techniques that will permit quantitative testing of the theory. From a simple, unified conceptual structure Coleman derives, through elegant chains of reasoning, an encompassing theory of society. It promises to be the most important contribution to social theory since the publication of Talcott Parsons' Structure of Social Action in 1936. (shrink)

Within their value chains of suppliers through customers, many businesses are becoming more aware of the environmental aspects and impacts of their organizations. Viewed as a continuum of behavior, business environmentalism can range from simply complying with the law to accepting and pursuing a goal of sustainable development. The point on the continuum at which an organization chooses to operate is reflected in its environmental mission, policies, and actions. Attributes of the various levels of behavior and classification of some organizational (...) mission statements are examined in this paper. (shrink)

Multinational enterprises have continued their increase during the last decades. What these companies do and how they do, determines not only the economic development of countries, but also their social and cultural development. This enormous power implies responsibility and new challenges.If we also take into account the role of multinational enterprises in what has been called sustainable development, we see that their importance is still more decisive.