Recently, a number of people have argued that certain entities embodied by groups of agents themselves qualify as agents, with their own beliefs, desires, and intentions; even, some claim, as moral agents. However, others have independently argued that fully-fledged moral agency involves a capacity for reactive attitudes such as guilt and indignation, and these capacities might seem beyond the ken of “collective” or “ corporate ” agents. Individuals embodying such agents can of course be ashamed, proud, or indignant about what (...) the agent has done. But just as an entity needs to have its own beliefs, desires, and intentions to qualify as a bona fide agent, the required capacity for reactive attitudes is a capacity to have one’s own reactive attitudes. If fully-fledged moral agency requires reactive attitudes, the corporate agent must itself be capable of guilt and indignation. In this paper, we argue that at least certain corporate agents are. Or, more precisely, we argue that if there are bona fide corporate agents, these agents can have the capacities that are both associated with guilt and indignation and plausibly required for moral agency; in particular certain epistemic and motivational capacities. (shrink)

This section aims to summarize and conclude Part I in the form of a taxonomy of legitimate and illegitimate corporate moral responsibility attributions. I believe we can categorise four types of corporate moral responsibility attributions two of which are legitimate and two which are illegitimate with regard to our concept of moral agency and our moral intuition of fairness.

Recently T. M. Scanlon and others have advanced an ostensibly comprehensive theory of moral responsibility—a theory of both being responsible and being held responsible—that best accounts for our moral practices. I argue that both aspects of the Scanlonian theory fail this test. A truly comprehensive theory must incorporate and explain three distinct conceptions of responsibility—attributability, answerability, and accountability—and the Scanlonian view conflates the first two and ignores the importance of the third. To illustrate what a truly comprehensive theory might look (...) like, I investigate what it would say about the difficult case of the psychopath. (shrink)

Properly speaking, the corporation, considered as an entity distinct from its members, cannot be morally responsible for wrongful corporate acts. Setting aside (in this abstract) acts brought about through negligence or omissions, we may say that moral responsibility for an act attaches to that agent (or agents) in whom the act "originates" in this sense: (1) the agent formed the (mental) intention or plan to bring about that act (possibly with the help of others) and (2) the act was intentionally (...) brought about through bodily movements over which that agent had direct control (i.e. the kind of direct mental control that I have over the body I refer to as "my" body) and through which the agent carried out his (mental) intention or plan. Corporate acts do not thus originate in some corporate entity distinct from its members because the corporation has neither a mind to form intentions nor a body it directly controls: it lacks the proper mind/body unity. Instead, corporate acts originate in individual autonomous human beings who make up the corporation and who intentionally bring about corporate acts through their own bodily movements. Such human individuals, and not "the corporation," are morally responsible for corporate acts. Moreover, to say that an entity is "morally responsible" for a wrongful act is to say that the entity is liable to blame and punishment. But it is not possible to impose blame and punishment on a corporation without inflicting it on corporate members. Thus, to say that a corporation (as an entity distinct from its members) is "morally responsible" for a wrongful corporate act is to imply that a (possibly innocent) corporate member legitimately may be punished for something for which another entity was morally responsible. This violates the moral principles that underlie blame and punishment. To hold that the corporation can be morally responsible for its acts is to adopt a dangerous organicism. (shrink)

I address three topics. First, I argue that the issue of corporate moral responsibility is an important one for business ethics.Second, I examine a core argument for the claim that the corporate organization is a separate moral agent and show it is based on anunnoticed but elementary mistake deriving from the fallacy of division. Third, I examine the assumptions collectivists make about whatit means to say that organizations act and that they act intentionally and show that these assumptions are mistaken (...) in their failure to understand the nature of intentional causality and of “as-if” intentionality. In exposing these mistakes I set out my own view in the form oftwo theses, the first of which states that individual members of an organization are always causally responsible for any corporate act,and the second of which states that attributions of intentions to corporations are always either descriptive or prescriptive attributionsof “as if” intentionality. (shrink)

The debate surrounding the issue of collective moral responsibility is often steeped in metaphysical issues of agency and personhood. I suggest that we can approach the metaphysical problems surrounding the issue of collective responsibility in a roundabout manner. My approach is reminiscent of that taken by P.F. Strawson in “Freedom and Resentment” (1968). Strawson argues that the participant reactive attitudes – attitudes like resentment, gratitude, forgiveness and so on – provide the justification for holding individuals morally responsible. I argue that (...) the framework of the reactive attitudes extends to collectives and provides the justification for holding collectives morally responsible. (shrink)

This paper attempts to provide a more plausible theory of moral accountability and the crucial role in it of moral address by taking seriously four "marginal" cases of agency: psychopaths, moral fetishists, and individuals with autism and mild intellectual disabilities. Each case motivates the addition of another key accountability capacity.

This essay provides a critical overview of the debate about corporate moral responsibility. Parties to the debate address whether corporations are the kinds of entities that can be blamed when they cause unjustified harm. Proponents of CMR argue that corporations satisfy the conditions for moral agency and so they are fit for blame. Their opponents respond that corporations lack one or more of the capacities necessary for moral agency. I review the arguments on both sides and conclude ultimately that what (...) divides the two is not so much competing conceptions of the corporation as it is disagreement about what moral agency requires. Homing in on the real site of contention will, it is hoped, allow future participants in the debate to focus their efforts more productively. (shrink)

It is uncontroversial that corporations are legal agents that may be attributed with legal responsibilities. However, can corporations also be moral agents that are the proper subjects of moral responsibility attributions? The concept of corporate moral agency entails that corporations can be the proper bearers of moral responsibilities in a manner that is distinct from their human members. The paper acknowledges the important work done by Velasquez in debunking the purported intention and action abilities for corporate moral agency, but suggests (...) that a simpler debunking is possible by focusing on the moral agency ability of autonomy. Furthermore, a proper grasp of the autonomy ability provides a greater understanding for why corporations cannot have autonomous intentions nor perform autonomous actions. The autonomy ability demonstrates the fallacy of corporate moral agency because it shows the impossibility of establishing the corporation as the proper bearer of moral responsibility in a manner that is distinct from the corporate members. (shrink)

Despite some exceptions, the business ethics literature on the moral responsibility of corporations does not emphasize a subject critical to that inquiry: the general nature of corporations. This article attempts to lessen the imbalance by describing three conceptions of the corporation that have been prominent in twentieth century legal theorizing, and by sketching their implications for the moral responsibility of corporations. These three conceptions, at least two of which have counterparts in the philosophical and organizational theory literature, are the concession, (...) aggregate, and real entity theories. The article concludes that the real entity theory is the most plausible of the lot. At least under prevailing tests of moral responsibility, it then contends, corporations-as-real-entities are morally responsible for most of their members' actions. (shrink)

The Herald of Free Enterprise, a ferry operating in the English Channel, sank on March 6, 1987, drowning nearly two hundred people. The official inquiry found that the company running the ferry was extremely sloppy, with poor routines of checking and management. “From top to bottom the body corporate was infected with the disease of sloppiness.”1 But the courts did not penalize anyone in what might seem to be an appropriate measure, failing to identify individuals in the company or on (...) the ship itself who were seriously enough at fault. As one commentator put it, “The primary requirement of finding an individual who was liable . . . stood in the way of attaching any significance to the organizational sloppiness that had been found by the official inquiry.”2 In a case like this it can make good sense to hold that while the individuals involved may not bear a high degree of personal responsibility, together as a corporate enterprise they should carry full responsibility for what occurred. Although the members may not fully satisfy the conditions for being held personally responsible—although there are mitigating circumstances that excuse them in some mea-. (shrink)

The debate surrounding the issue of collective moral responsibility is often steeped in metaphysical issues of agency and personhood. I suggest that we can approach the metaphysical problems surrounding the issue of collective responsibility in a roundabout manner. My approach is reminiscent of that taken by P.F. Strawson in "Freedom and Resentment" (1968). Strawson argues that the participant reactive attitudes - attitudes like resentment, gratitude, forgiveness and so on - provide the justification for holding individuals morally responsible. I argue that (...) the framework of the reactive attitudes extends to collectives and provides the justification for holding collectives morally responsible. (shrink)

The discussion about the relationship between tone at the top and financial reporting practices has been primarily focused on the oversight role played by the board of directors and other structural elements of corporate governance. Another relevant determinant of tone at the top is the corporate narrative language, since it is a fundamental way in which the chief executive officer enacts leadership. In this study, we empirically explore the association between financial reporting aggressiveness and five thematic indicators capturing different traits (...) of ethical leadership from 535 annual letters to shareholders. We find that aggressive financial reporting is positively associated with CEO letters using a language which is resolute, complex, and not engaging. Our empirical findings highlight the importance of examining discretionary corporate narratives for the auditing process and the role of tone at the top in influencing accounting practices. (shrink)

My aim in this paper is to explore the notion that corporations have moral rights within the context of a constitutive rules model of corporate moral agency. The first part of the paper will briefly introduce the notion of moral rights, identifying the distinctive feature of moral rights, as contrasted with other moral categories, in Vlastos' terms of overridingness. The second part will briefly summarize the constitutive rules approach to the moral agency of corporations (à la French, Smith, Ozar) and (...) pose the question of the paper. The third part will argue that, since the moral agency of corporations is dependent on the choices of those whose acceptence of the relevant rules constitutes the corporation as a moral agent, the rights of corporations are conventional; that is, they exist because they are so created. Thus, as a first answer, corporations do not have moral rights.But this raises a further question which we must explore. Once a corporation has been constituted, by the acceptance of the relevant rules by the relevant persons, does the corporation then have rights which endure? Can those who have constituted a corporation with certain rights morally change or cancel those rights in medias res without doing some sort of moral violence to the corporation? Do corporations at least have a moral right to persist in the conventional rights with which they were constituted? (shrink)

The debate concerning corporate moral agency is normally conducted through philosophical arguments in articles which argue from only one point of view. This paper summarises both the arguments for and against corporate moral agency and concludes from this that the arguments in favour have more weight. The paper also addresses the way in which the law in the U.K. and the U.S.A. currently views this issue and shows how it is supportive of the concept of corporate moral agency. The paper (...) concludes by considering the implications of the debate for business ethics in general, and stakeholder theory and virtue ethics in particular. (shrink)

The article presents the nature of shared intentions and collective responsibility in simultaneous discussion of individualism, which views that collective agents and shared intentions are to be analyzed in relation between individual agents who are members of the collectives. It discusses as well the agent meaning theory that states that an agent moves against the interpretive background of action evaluation shared by the agent and the moral community.

In this paper, I consider the claim that a corporation cannot be held to be morally responsible unless it is a person. First, I argue that this claim is ambigious. Person flags three different but related notions: metaphysical person, moral agent, moral person. I argue that, though one can make the claim that corporates are metaphysical persons, this claim is only marginally relevant to the question of corporate moral responsibility. The central question which must be answered in discussions of corporate (...) moral responsibility is whether corporations are moral agents or moral persons. I argue that, though we can make a case for saying corporations are moral agents, they are not moral persons, and hence, we can hold them responsible. In addition, we need not treat them the way we would be obligated to treat a moral person; we needn't have the same scruples about holding a corporation morally responsible as we would a moral person. (shrink)

First published in 1962, contains the William James Lectures delivered at Harvard University in 1955. It sets out Austin's conclusions in the field to which he directed his main efforts for at least the last ten years of his life. Starting from an exhaustive examination of his already well- known distinction of performative utterances from statements, Austin here finally abandons that distinction, replacing it by a more general theory of 'illocutionary forces' of utterances which has important bearings on a wide (...) variety of philosophical problems. (shrink)

Ethicists and legal theorists have proposed models of corporate culpability that shift the standard of guilt determination from vicariousattribution of individual action and intention to an assessment of culture, policies, as well as organizational action and inaction. This paper briefly reviews four prominent models of corporate culpability, arguing that each makes claims that extend well beyond the limits of existing law. As an alternative to these models, a constructive corporate fault is described that relies on both objective and subjective reasonableness (...) judgments. The paper concludes with a consideration of constructive corporate fault in relation to an Accountability model of corporate liability. (shrink)

We discuss how the approach taken by regulators to address financial reporting issues has a significant influence on tone at the top. While tone must ultimately be established internally, regulators are more likely to have a positive impact on the quality of financial reporting by addressing organizational tone. A strong tone at the top should ensure that the financial reports are characterized by greater transparency and complete disclosures, and a regulator’s response will depend upon their perspective as to what motivates (...) management. A compliance-based approach, rooted in agency theory’s assumption that managers act in their own best interests, seeks to mandate desirable behavior through elevated monitoring and reduced managerial discretion. Alternatively, an empowerment-based approach rooted in stewardship theory views managers as trustworthy guardians and grants them greater discretion without burdensome external monitoring. In practice, regulations fall on a continuum between these two approaches. To illustrate the continuum between compliance and empowerment, we present three cases in financial and tax reporting and examine the outcomes of these recent regulatory responses. We then provide conclusions regarding the effectiveness of each regulation by considering how tone was influenced within organizations. (shrink)

The academic debate over the propriety of attributing moral responsibility to corporations is decades old and ongoing. The conventional approach to this debate is to identify the sufficient conditions for moral agency and then attempt to determine whether corporations possess them. This article recommends abandoning the conventional approach in favor of an examination of the practical consequences of corporate moral responsibility. The article’s thesis is that such an examination reveals that attributing moral responsibility to corporations is ethically acceptable only if (...) it does not authorize the punishment of corporations as collective entities, and further, that this renders the debate over corporate moral responsibility virtually pointless. (shrink)

Opening with Ford Motor Company as a case in point, this essay develops a broad and systematic approach to the field of business ethics. After an analysis of the form and content of the concept of responsibility, the author introduces the principle of moral projection as a device for relating ethics to corporate policy. Pitfalls and objections to this strategy are examined and some practical implications are then explored.The essay not only defends a proposition but exhibits a research style and (...) a research program. Philosophical ethics and organizational management are joined in the process. (shrink)

The tragic crash of Air New Zealand's flight TE-901 into Mt. Erebus in Antarctica provides a fascinating case for the exploration of the notion of corporate moral responsibility. A principle of accountability that has Aristotelian roots and is significantly different from the usual strict intentional action principles is examined and defined. That principle maintains that a person can be held morally accountable for previous non-intentional behavior that has harmful effects if the person does not take corrective measures to adjust his (...) ways of behavior so as not to produce repetitions. This principle is then applied to the Mt. Erebus disaster. (shrink)