Finance is grease to the economy. Therefore, we assume that it may affect corporate social responsibility (CSR) and the sustainability of economic development too. This paper discusses the transmission mechanisms between finance and sustainability. We find that there is no simple one-to-one relationship between financial development and sustainable development but there are various – often indirect – linkages. It appears that most of the literature concentrates on the role of public shareholders when it comes to changing corporate policy and performance (...) in a more sustainable direction. However, this focus neglects the potential impact of the credit channel and private equity on a firm’s non-financial policies and performance. These very powerful mechanisms can govern business policies and practices. Therefore, there appears to be much more scope for finance to promote socially and environmentally desirable activities and to discourage detrimental activities than has been acknowledged in the academic literature so far. (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)

Here, for the first time in English, is volume one of Jurgen Habermas's long-awaited magnum opus: The Theory of Communicative Action. This pathbreaking work is guided by three interrelated concerns: to develop a concept of communicative rationality that is no longer tied to the subjective and individualistic premises of modern social and political theory; to construct a two-level concept of society that integrates the 'lifeworld' and 'system' paradigms; and to sketch out a critical theory of modernity that explains its sociopathologies (...) in a new way. Habermas approaches these tasks through a combination of conceptual analyses, systematic reflections, and critical reconstructions of such predecessors as Marx and Weber, Durkheim and Mead, Horkheimer and Adorno, Schutz and Parsons. Reason and the Rationalization of Society develops a sociological theory of action that stresses not its means-ends or teleological aspect, but the need to coordinate action socially via communication. In the introductory chapter Habermas sets out a powerful series of arguments on such foundational issues as cultural and historical relativism, the methodology of Verstehen, the inseparabilty of interpretation from critique. In addition to clarifying the normative foundations of critical social inquiry, this sets the stage for a systematic appropriation of Weber's theory of rationalization and its Marxist reception by Lukacs, Horkheimer and Adorno. This is an important book for degree students of philosophy, sociology and related subjects. (shrink)

Does a global economy render the traditional nation-state obsolete? Does globalization threaten democratic life, or offer it new forms of expression? The German philosopher and social theorist Jurgen Habermas addresses these and other questions in this work.

The original edition of Kant: Political Writings was first published in 1970, and has long been established as the principal English-language edition of this important body of writing. In this new, expanded edition two important texts illustrating Kant's view of history are included for the first time, his reviews of Herder's Ideas on the Philosophy of the History of Mankind and Conjectures on the Beginning of Human History, as well as the essay What is Orientation in Thinking?. In addition to (...) a general introduction assessing Kant's political thought in terms of his fundamental principles of politics, this edition also contains such useful student aids as notes on the texts, a comprehensive bibliogaphy and a new postscript, looking at some of the principal issues in Kantian scholarship that have arisen since the first edition. (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)

Mining companies have long had a questionable reputation for social responsibility, especially in developing countries. In recent years, mining companies operating in developing countries have come under increased pressure as opponents have placed them under greater public scrutiny. Mining companies have responded by developing global corporate social responsibility strategies as part of their larger global business strategies. In these strategies, a prominent place is given to their relationship with local communities. For business ethics, one basic issue is whether such an (...) approach to corporate responsibility is likely to effectively address the development concerns of local communities in developing countries. This paper addresses this question by investigating how the corporate social responsibility agenda of a major minor company has been implemented by one of its subsidiaries in South Africa. (shrink)

ABSTRACT:Based on theoretical insights of discourse ethics as developed by Jürgen Habermas, we delineate a proposal to further develop the institutionalization of social accounting in multinational corporations (MNCs) by means of “Social Accountability 8000” (SA 8000). First, we discuss the cornerstones of Habermas's discourse ethics and elucidate how and why this concept can provide a theoretical justification of the moral point of view in MNCs. Second, the basic conception, main purpose, and implementation procedure of SA 8000 are presented. Third, we (...) critically examine SA 8000 from a Habermasian perspective, and discuss advantages and drawbacks of the initiative. Fourth, to address the drawbacks, we introduce a “discourse-ethically” extended version of SA 8000. We show that this approach is theoretically well-founded and able to overcome some of the current deficits of the certification initiative. We demonstrate that the extended version of SA 8000 can be successfully applied on a cross-cultural basis, and that our findings have significant implications for other international ethics initiatives. (shrink)

Combating and overcoming corruption in business and in political affairs is one of the most important issues facing business and professional ethics in the 21st century. That corruption exists is a fact. That corruption is widespread and spreading is a commonperception. Many believe that corruption is culturally induced. Some believe corruption to be so much a part of the fabric of some societies as to be unquestioned and unassailable. Or, is it simply a myth that corruption is a matter of (...) culture? (shrink)

The value foundation for a global society -- Ethics and international business -- Human rights concepts and principles -- Political involvements by business -- The foreign production process -- Product and export controls -- Marketing motives and methods -- Culture and the human environment -- Nature and the physical environment -- Business guidance and control mechanisms -- Deciding ethical dilemmas.

Traditional approaches to regulating corporate behavior have not, and cannot, produce socially responsible corporations.Although many of the problems with these approaches were identified twenty-five years ago by Christopher Stone, an effective regulatory system still has not been implemented. A model of regulation is needed that is flexible enough to accommodate the variety of contexts in which corporations operate, but also makes corporations responsive to the ever-changing societal expectations of propercorporate behavior. To accomplish these goals, a reflexive law regulatory system is (...) needed. Under this approach, corporationsshould be encouraged to engage in corporate social accounting, auditing, and reporting (SAAR). The development of SAAR standardsinformed by reflexive law theory will create a regulatory system that is consistent with the latest thinking in business ethics, includingStakeholder Theory and Integrative Social Contracts Theory. (shrink)

Confronted with mounting pressure to ensure accountability vis-à-vis customers, citizens and beneficiaries, organizational leaders need to decide how to choose and implement so-called accountability standards. Yet while looking for an appropriate standard, they often base their decisions on cost-benefit calculations, thus neglecting other important spheres of influence pertaining to more broadly defined stakeholder interests. We argue in this paper that, as a part of the strategic decision for a certain standard, management needs to identify and act according to the needs (...) of all stakeholders. We contend that the creation of a dialogical understanding among affected stakeholders cannot be a mere outcome of applying certain accountability standards, but rather must be a necessary precondition for their use. This requires a stakeholder dialogue prior to making a choice. We outline such a discursive decision framework for accountability standards based on the Habermasian concept of communicative action and, in the final section, apply our conceptual framework to one of the most prominent accountability tools (AA 1000). (shrink)

This article focuses on the association between the beliefs of small business owners and managers and their support for the community. Qualitative and quantitative data are utilized in an exploratory examination of two rationales for socially responsible behavior and of two kinds of support. Analyses show that the belief in strengthening the community as an important strategy for business success is positively associated with the provision of nonrisky and risky support. Risky support may threaten short-term business success. However, the belief (...) that a good public image is important for business success is negatively or not significantly associated with either risky or nonrisky support for the community. Findings uphold the position that there are significant variations in enlightened self-interest rationales that are differentially associated with business social performance among small business operators and demonstrate the usefulness of disaggregating social performance into risky and nonrisky variations. (shrink)