We all have beliefs, even strong convictions, about what is just and fair in our social arrangements. How should these beliefs and the theories of justice that incorporate them guide our thinking about practical matters of justice? This wide-ranging collection of essays by one of the foremost medical ethicists in the USA explores the claim that justification in ethics, whether of matters of theory or practice, involves achieving coherence between our moral and non-moral beliefs. Amongst the practical issues addressed in (...) the volume are the design of health-care institutions, the distribution of goods between the old and the young, and fairness in hiring and firing. In combining ethical theory and practical ethics this volume will prove especially valuable to philosophers concerned with ethics and applied ethics, political theorists, bioethicists, and others involved in the study of public policy. (shrink)

Towards Justice and Virtue challenges the rivalry between those who advocate only abstract, universal principles of justice and those who commend only the particularities of virtuous lives. Onora O'Neill traces this impasse to defects in underlying conceptions of reasoning about action. She proposes and vindicates a modest account of ethical reasoning and a reasoned way of answering the question 'who counts?', then uses these to construct linked accounts of principles by which we can move towards just institutions and virtuous lives.

We critically assess integrative social contracts theory (ISCT) and show that the concept particularly lacks of moral justification of substantive hypernorms. By drawing on Habermasian philosophy, in particular discourse ethics and its recent application in the theory of deliberative democracy , we further advance ISCT and show that social contracting in business ethics requires a well-justified procedural rather than a substantive focus for managing stakeholder relations. We also replace the monological concept of hypothetical thought experiments in ISCT by a concept (...) of practical discourse to better govern business activities on the macro-level of organizational actors such as firms, governments, and NGOs. (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)

This book continues and revises the ideas of justice as fairness that John Rawls presented in _A Theory of Justice_ but changes its philosophical interpretation in a fundamental way. That previous work assumed what Rawls calls a "well-ordered society," one that is stable and relatively homogenous in its basic moral beliefs and in which there is broad agreement about what constitutes the good life. Yet in modern democratic society a plurality of incompatible and irreconcilable doctrines -- religious, philosophical, and moral (...) -- coexist within the framework of democratic institutions. Recognizing this as a permanent condition of democracy, Rawls asks how a stable and just society of free and equal citizens can live in concord when divided by reasonable but incompatible doctrines? This edition includes the essay "The Idea of Public Reason Revisited," which outlines Rawls' plans to revise _Political Liberalism,_ which were cut short by his death. "An extraordinary well-reasoned commentary on _A Theory of Justice_...a decisive turn towards political philosophy." -- _Times Literary Supplement_. (shrink)

Abstract:Building on John Rawls’s account of the Law of Peoples, this paper examines the grounds and scope of the obligations of transnational corporations (TNCs) that are owned by members of developed economies and operate in developing economies. The paper advances two broad claims. First, the paper argues that there are conditions under which TNCs have obligations to fulfill a limited duty of assistance toward those living in developing economies, even though the duty is normally understood to fall on the governments (...) of developed economies. Second, by extending Rawls’s account to include a right to protection against arbitrary interference, the paper argues that TNCs can be said to have negative and positive obligations in the areas of human rights, labor standards, and environmental protection, as outlined in the U.N. Global Compact. More generally, the paper aims to further our understanding of the implications of Rawls’s account of justice. (shrink)

This article assesses some of the implications of globalization for the scholarly debate on business ethics, CSR and related concepts. The argument is based, among other things, on the declining capacity of nation state institutions to regulate socially desirable corporate behavior as well as the growing corporate exposure to heterogeneous social, cultural and political values in societies globally. It is argued that these changes are shifting the corporate role towards a sphere of societal governance hitherto dominated by traditional political actors. (...) This leads to a discussion of the ambivalent results of such a process for a responsible corporate role in a globalized world. While assessing the current reception these changes have received in the management literature, the contributions of the four articles in this Special Issue are framed and evaluated. The argument closes by highlighting avenues of future research on this new challenge. (shrink)

Though the revised edition of A Theory of Justice, published in 1999, is the definitive statement of Rawls's view, so much of the extensive literature on Rawls's theory refers to the first edition.

This is a short, accessible introduction to John Rawls' thought and gives a thorough and concise presentation of the main outlines of Rawls' theory as well as drawing links between Rawls' enterprise and other important positions in moral and political philosophy.

Abstract:Western business philosophy is rooted in the concepts of free enterprise, free markets, free choice. Yet freedom has its limits. Nature itself imposes constraints. In the state of nature each business must try to accomplish everything autonomously and ward off the attacks of rivals. These activities cost the business a great deal of freedom. The social contract emerges from such anarchy to increase the freedom available to all members of society. It does so by setting limits on individual freedom which (...) actually increase the overall amount of freedom available within the system. The Social Equation presents a relational model of this contract to show how overall freedom is increased in a state of society. In so doing, the obligations which society places on businesses to produce beneficial goods and services is developed. Next, the complex relationship between socially enforced constraints and social moral constraints is examined, showing that social moral constraints increase freedom more than do enforced constraints. This work concludes with proposed uses of the Social Equation as a heuristic for business ethics. (shrink)

ABSTRACT:Drawing upon John Rawls's framework inThe Law of Peoples,this paper argues that MNEs have a responsibility to promote well-ordered social and political institutions in host countries that lack them. This responsibility is grounded in a negative duty not to cause harm. In addition to addressing the objection that promoting well-ordered institutions represents unjustified interference by MNEs, the paper provides guidance for managers of MNEs operating in host countries that lack just institutions. The paper argues for understanding corporate responsibility in relation (...) to the specific institutional environment in which MNEs operate. (shrink)

Is morality rational? In this book Gauthier argues that moral principles are principles of rational choice. He proposes a principle whereby choice is made on an agreed basis of cooperation, rather than according to what would give an individual the greatest expectation of value. He shows that such a principle not only ensures mutual benefit and fairness, thus satisfying the standards of morality, but also that each person may actually expect greater utility by adhering to morality, even though the choice (...) did not have that end primarily in view. In resolving what may appear to be a paradox, the author establishes morals on the firm foundation of reason. Gauthier's argument includes an account of value, linking it to preference and utility; a discussion of the curcumstances in which morality is unnecessary; and an application of morals by agreement to relations between peoples at different levels of development and different generations. Finally, he reflects on the assumptions about individuality and community made by his account of rationality and morality. (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)

Due to the domain characteristics of business ethics, a contractarian theory for business ethics will need to be essentially different from the contract model as it is applied to other domains. Much of the current criticism of contractarian business ethics (CBE) can be traced back to autonomy, one of its three boundary conditions. After explaining why autonomy is so important, this article considers the notion carefully vis à vis the contracting partners in the contractarian approaches in business ethics. Autonomy is (...) too demanding a condition for the realm of CBE. But a less stringent version of the contract may be possible, a version which uses the contract as a heuristic device, which merely requires moral responsibility. Furthermore, it is argued that views of (human) agency and the moral subject should be made explicit in such a theory. (shrink)

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The constitutions of many nations have been explicitly or implicitly founded upon principles of the social contract derived from Thomas Hobbes. The Hobbesian egoism at the base of the contract fairly accurately represents the structure of market enterprise. A contractarian analysis may, then, allow for justified or rationally acceptable universal standards to which businesses should conform. This paper proposes general rational restrictions upon multi-national enterprises, and includes a critique of unjustified restrictions recently proposed by the Organization for Economic Cooperation and (...) Development (OECD). I propose restrictions that may be tighter than the OECD and international law currently demand, because reason requires that the activities of enterprises accord with standards of environmental and governmental sustainability in addition to consortium, national law and international law agreements. I argue that it is justifiable that indictments may be presented by a citizen or a government against the local arm of a multinational enterprise in response to violations committed by an arm within a different country. (shrink)

Plato claimed that morality exits to control conflict. Business people increasingly are called upon to resolve moral conflicts between various stakeholders who maintain opposing ethical positions or principles. Attempts to resolve these moral conflicts within business discussions may be exacerbated if disputants have different communicative styles. To better understand the communication process involved in attempts to resolve a moral dilemma, we investigate the "discourse ethics" procedure of Jürgen Habermas. Habermas claims that an individual's level of moral reasoning parallels the type (...) of communication which that individual typically uses in attempts to resolve conflict. Our research focuses upon the relationship between the communicative style used by participants attempting to resolve a particular moral dilemma involving workplace safety and the level of moral reasoning possessed by those participants. The results of our study suggest that, contrary to Habermas' views, participants with "higher" levels of moral reasoning do not use "discursive" communicative tactics more frequently than participants that possessed "lower" moral reasoning. (shrink)

This article assesses the quality of Integrative Social Contracts Theory (ISCT) as a social contract argument. For this purpose, it embarks on a comparative analysis of the use of the social contract model as a theory of political authority and as a theory of social justice. Building on this comparison, it then develops four criteria for any future contractarian theory of business ethics (CBE). To apply the social contract model properly to the domain of business ethics, it should be: (1) (...) self-disciplined, i.e., not aspire results beyond what the contract model can realistically establish; (2) argumentative, i.e., it should seek to provide principles that are demonstrative results of the contractarian method; (3) task-directed, i.e., it should be clear what the social contract thought-experiment is intended to model; and (4) domain-specific, i.e., the contractarian choice situation should be tailored to the defining problems of business ethics. (shrink)

There is much current and growing interest in theorizing about global justice. Contemporary events in the world probably account for most of this, but if any philosophical text can be identified as igniting theorists' relatively newly found interest, it must be John Rawls's influential book, The Law of Peoples . There is a lively debate between critics and advocates of Rawls's approach, and much theorizing about global justice is framed in terms of that exchange. Because of its enormous influence in (...) shaping the terms of discussion, familiarity with this work is important for being able to participate in the current theoretical conversations about global justice. In this article I examine that debate and assess the state of play. I briefly outline the central themes of Law of Peoples in section 2 and criticism these ideas attracted in 3. In section 4 I cover some defenses of Rawls's account. In section 5, I assess the state of play and implications for debates about global justice. (shrink)

John Rawls, in his distinguished revival and animation of the theory of the social contract, maintains that “the procedure of contract theories provides … a general analytic method for the comparative study of conceptions of justice ”. As a corollary, he holds, secondly, that “if one interpretation [of the contractual situation] is philosophically most favoured, and if its principles characterize our considered judgments, we have a procedure for justification as well ”. Finally, Rawls uses the social contract as a critical (...) or polemic device; he is prepared to reject a conception of justice if the contractual situation associated with it contains objectionable features. (shrink)

This paper discusses global corporate citizenship in the twenty-first century. The primary focus is on the responsibility of managementeducators to foster among students an understanding of the causes and consequences of business activitiy that creates organizationalwealth, including the role of stakeholders. The modern corporation is a stakeholder enterprise: stakeholders enable the business to create wealth and require that it distribute wealth appropriately. The stakeholder enterprise model, which has been so economically successful, also implies corporate citizenship responsibilities. The Clarkson Principles are (...) discussed as a means through which educators and managers can better understand and address the challenges of corporate citizenship in the modern world. (shrink)

Abstract:In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of “corporate citizenship” to take root. We then distinguish the concept of global business citizenship from “corporate citizenship” by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global (...) business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences. (shrink)

This paper examines voluntary corporate social responsibility (CSR) reporting as a form of moral discourse. It explores how alternative stakeholder perspectives lead to differing perceptions of the process and content of responsible reporting. We contrast traditional stakeholder theory, which views stakeholders as external parties having a social contract with corporations, with an emerging perspective, which views interaction among corporations and constituents as relational in nature. This moves the stakeholder from an external entity to one that is integral to corporate activity. (...) We explore how these alternative stakeholder perspectives give rise to different normative demands for stakeholder engagement, managerial processes, and communication. We discuss models of CSR reporting and accountability: EMAS, the ISO 14000 series, SA8000, AA1000, the Global Reporting Initiative, and the Copenhagen Charter. We explore how these models relate to the stakeholder philosophies and find that they are largely consistent with the traditional atomistic view but fall far short of the demands for moral engagement prescribed by a relational stakeholder perspective. Adopting a relational view requires stakeholder engagement not only in prescribing reporting requirements, but also in discourse relating to core aspects of the corporation such as mission, values, and management systems. Habermas’ theory of communicative action provides guidelines for engaging stakeholders in this moral discourse. (shrink)

This paper argues that widely accepted understanding of the respective responsibilities of business and government in the post war industrialized world can be traced back to a tacit social contract that emerged following the second world war. The effect of this contract was to assign responsibility for generating wealth to business and responsibility for ensuring the equitable sharing of wealth to governments. Without question, this arrangement has resulted in substantial improvements in the quality of life in the industrialized world in (...) the intervening period. I argue that with advance of economic globalization and the growing power and influence of multi national corporations, this division of responsibilities is not longer viable or defensible. What is needed, fifty years after the United Nations Declaration of Human Rights, is a new social contract that shares responsibilities for human rights and related ethical responsibilities in a manner more in keeping with the vision captured by the post war Declaration. I conclude by suggesting some reasons for thinking that a new social contract may be emerging. (shrink)

Abstract:Phillips and Margolis argue that moral philosophy is a poor basis for business ethics, but their narrow view of moral philosophy would exclude Aristotle, for one. They criticize me for assimilating states and organizations in using the Rawlsian device, but they put too much faith in Rawls’s distinction between states and voluntary organizations and pay too little attention to the continuities between them. Their plea for a conceptually autonomous ethics for organizations I interpret as reasonable and largely compatible with my (...) own stated opinion. (shrink)

Professor Donaldson in his book Corporations and Morality has attempted to use a social contract theory to develop moral principles for regulating corporate conduct. I argue in this paper that his attempt fails in large measure because what he refers to as a social contract theory is, in fact, a weak functionalist theory which provides no independent basis for evaluating business corporations. I further argue that given the nature of a morality based on contract and the nature of the modern (...) corporation, it is highly unlikely that any plausible contract theory of business ethics can be developed. (shrink)

The article examines Rawlss Law of Peoples as an attemptto extend the conception of public justification originallydeveloped in Political Liberalism to the internationaldomain. After briefly sketching the main elements of Rawlssconception of public justification, the article examineshow this is developed in Law of Peoples, pointingout the main differences with the domestic case. The articlethen tries to show that Rawlss justificatory strategy containsa number of inconsistencies which undermine the persuasivenessof the conception of international justice he advocates. Thisin turn can be traced (...) back to the failure fully to addressthe constituency problem facing theories ofpublic justification. (shrink)

Abstract:In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of “corporate citizenship” to take root. We then distinguish the concept of global business citizenship from “corporate citizenship” by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global (...) business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences. (shrink)

This essay seeks to give a contractarian foundation to the concept of Corporate Social Responsibility, meant as an extended model of corporate governance of the firm. It focuses on justification according to the contractarian point of view. It begins by providing a definition of CSR as an extended model of corporate governance, based on the fiduciary duties owed to all the firm's stakeholders. Then, by establishing the basic context of incompleteness of contracts and abuse of authority, it analyses how the (...) extended view of corporate governance arises directly from criticism of the contemporary neo-institutional economic theory of the firm. Thereafter, an application of the theory of bargaining games is used to deduce the structure of a multi-stakeholder firm, on the basis of the idea of a constitutional contract, which satisfies basic requirements of impartial justification and accordance with intuitions of social justice. This is a sequential model of constitutional bargaining, whereby a constitution is first chosen, and then a post-constitutional coalition game is played. On the basis of the unique solution given to each step in the bargaining model, the quest for a prescriptive theory of governance and strategic management is accomplished, so that I am able to define an objective-function for the firm consistent with the idea of CSR. Finally, a contractarian potential explanation for the emergence of the multi-fiduciary firm is provided. (shrink)

This article evaluates the social contract theorizing of Professors Thomas DonaIdson, Thomas Dunfee and Michael Keeley. This theorizing is tested with G.E. Moore’s concept of moral authority, with moral psychology, and by managerial utility. Both strengths and weaknesses are found in the theories and the author concludes that while there is great potential, much work in theory development remains.

This article examines Rawls's and Scanlon's surprisingly undemanding contractualist accounts of global moral principles. Scanlon's Principle of Rescue requires too little of the world's rich unless the causal links between them and the poor are unreliable. Rawls's principle of legitimacy leads him to theorize in terms of a law of peoples instead of persons, and his conception of a people leads him to spurn global distributive equality. Rawls's approach has advantages over the cosmopolitan egalitarianism of Beitz and Pogge. But it (...) cannot generate principles to regulate the entire global economic order. The article proposes a new cosmopolitan economic original position argument to make up for this lack in Rawls's Law of Peoples. (shrink)

In this article I rethink Rawls' conception of international economic justice, with a particular focus on international trade. I ground my normative argument on a different interpretation of the concepts of basic structure and of basic institution. I use the contemporary international trading system to illustrate my normative interpretation. I use the Law of Peoples to discuss the Rawlsian concept of basic structure. I contest Samuel Freeman's interpretation of this concept as one that pertains exclusively to the domestic realm. As (...) a reply, I work out an interpretation of basic institutions valid for both the national and international context. I base my understanding on the impact and the form of membership that characterize basic institutions. Both properties are compatible with an extension of the concept of a basic institution to the international domain. I then show how the World Trade Organization (WTO) system can be compared to a domestic basic institution. I analyse the decisional setting that surrounds the choice of joining the WTO. I conclude that no real alternative exists. Hence, WTO membership is not to be considered a completely free policy choice. I also state that the new system is witnessing a strong expansion of the areas subject to trade governance. Such expansion is responsible for the growing impact that international trade has on domestic institutions and hence on people. Finally, I use my analysis of contemporary international trading relations to test Rawls' position in the Law of Peoples. I conclude that although Rawls' principles for fair trade and international cooperation can regulate GATT-style international trade, they are not proficient in assessing the new characteristics of international trade. (shrink)

We argue that Néron and Norman’s article stops short of the point where it would truly advance our understanding of corporate citizenship. Their article, in our view, fosters normative confusion and displays significant gaps in logic. In addition, the large and useful literature on business-government relations has for the most part been overlooked by Néron and Norman, even though their article ends with an enthusiastic call for scholarly attention to this subject.

Since his article, ‘Outline for a Decision Procedure in Ethics,’ John Rawls has advocated a coherentist moral epistemology according to which moral and political theories are justified on the basis of their coherence with our other beliefs, both moral and nonmoral. A moral theory which is maximally coherent with our other beliefs is in a state which Rawls calls ‘reflective equilibrium’. In A Theory of Justice Rawls advanced two principles of justice and claimed that they are in reflective equilibrium. He (...) defended this claim by appeal to a hypothetical contract; he argued that parties in a position satisfying certain informational and motivational criteria, which he called ‘the original position,’ would choose the following two principles of justice to govern the basic structure of their society. (shrink)

Social contract theory offers a powerful method and metaphor for the study of organizational ethics. This paper considers the variant of the social contract that has arguably gained the most attention among business ethicists: integrative social contracts theory or ISCT [Donaldson and Dunfee: 1999, Ties That Bind (Harvard Business School Press, Boston)]. A core precept of ISCT - that consent to membership in an organization entails obligations to follow the norms of that organization, subject to the moral minimums of basic (...) human rights - is a reasonable and appealing notion. One potential challenge for those attempting to apply this idea, however, lies in the dynamic nature of social norms. Organizational norms evolve, often through the conscious efforts of community members and leaders. As currently formulated, ISCT offers a framework that under-appreciates the evolving nature of moral norms. In this paper, we extend ISCT by considering the circumstances under which the terms of and parties to social contracts change. We also consider a number of principles that should be considered as the terms and parties to organizational social contracts change. (shrink)

The article offers an account of the constructivist methodology in ethics and political philosophy as 1) deriving from an agnostic moral ontology and 2) proposing intersubjective justifiability as the criterion of justification for normative principles. It then asks whether constructivism, conceived in this way, can respond to the challenge of “content skepticism about practical reason”, namely whether it can provide sufficiently precise normative guidance whilst remaining faithful to its methodological commitment. The paper critically examines to alternative way of meeting this (...) challenge, namely John Rawls's original position and O'Neill's Kantian constructivism, analyses what is problematic about both, and endorses a third, possibly intermediate model. Within such a model, the basic features of the original position are accepted, but in a flexible and heuristic manner, thereby accommodating some of O'Neill's concerns. (shrink)

Contractualism is one of the most promising ‘centers of gravity’ in business ethics. In this guest editorial we provide a concise roadmap to the field, sketching contractualism’s historic and disciplinary antecedents, the basic argumentative structure of the contract model, and its boundary conditions. We also sketch two main dimensions along which contributions to the contractualist tradition can be positioned. The first dimension entails positive versus normative theorizing – does a given contribution analyze the world as it is or how it (...) ought to be? The second dimension involves four different levels of analysis that are commonly employed in contractualist business ethics: the nano, micro, meso, and macro levels. We then proceed to position the articles comprising this special issue along these two dimensions. (shrink)

Transnational corporations have become actors with significant political power and authority which should entail responsibility and liability, specifically direct liability for complicity in human rights violations. Holding TNCs liable for human rights violations is complicated by the discontinuity between the fragmented legal/political structure of the TNC and its integrated strategic reality and the international state system which privileges sovereignty and non-intervention over the protection of individual rights. However, the post-Westphalian transition—the emergence of multiple authorities, increasing ambiguity of borders and jurisdiction (...) and blurring of the line between the public and private spheres—should facilitate imposing direct responsibility on transnational firms. Mechanisms for imposing direct responsibility on TNCs are considered including voluntary agreements and international law. However, I conclude that a hybrid public-private regime which relies on non-hierarchical compliance mechanisms is likely to be both more effective and consistent with the structure of the emerging transnational order. (shrink)

Towards Justice and Virtue is Onora O’Neill’s most developed account thus far of her distinctive approach to moral and political philosophy. Readers who are already familiar with O’Neill’s articles and her two previous books will appreciate the way it brings together in one sustained and rigorous argument the various themes which have occupied her attention over the years. Those who are new to O’Neill’s work will find in it a lucid, accessible, and provocative challenge to contemporary ethical theories.