Abstract:Extrapolating from Carroll’s four domains of corporate social responsibility (1979) and Pyramid of CSR (1991), an alternative approach to conceptualizing corporate social responsibility (CSR) is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion (...) of limitations and teaching and research implications. (shrink)

A generation ago, the field of business ethics largely abandoned analyzing the broader issue of social justice to focus upon more micro concerns. Donaldson applied the social contract tradition of Locke and Rawls to the ethics of management decision-making, and with Dunfee, has advanced this project ever since. Current events suggest that if the field is to remain relevant it needs to return to examining social and economic fairness, and Rawl's approach to social contracting suggests a way to start. First, (...) however, the field needs to discard the weaker and counterproductive aspects of its Lockean legacy: Locke's hostility to government activism and his indifference with regard to outcomes for the bulk of society. Donaldson's and Dunfee's social contracting approach is not suited to, nor was it designed to, analyze or resolve broad issues of social and economic justice. Their postulated network of communities upon which they rely is problematic in a number of ways, and while they take the legal and political status quo into account, their method does not deal with the historical reality that, as the economic and social environment changes, promoting greater justice requires new and sometimes coercive government interventions. Rawls's work, however, does acknowledge the historically demonstrable necessity of using the power of government to help to achieve desirable social outcomes. While he rejected Mill's methodology, Rawls was inspired by the earlier philosopher's concerns for social justice at a time of major economic change. The field would do well to follow the example of both men in this respect. (shrink)

During the past ten years Integrative Social Contracts Theory (ISCT) has become part of the repertoire of specialized decision-oriented theories in the business ethics literature. The intention here is to (1)␣provide a brief overview of the structure and strengths of ISCT; (2) identify recurring themes in the extensive commentary on the theory including brief mention of how ISCT has been applied outside the business ethics literature; (3) describe where research appears to be headed; and (4) specify challenges faced by those (...) who seek to reform ISCT. Key themes in the critiquing literature relate to (a) the identification process for hypernorms; (b) justification of the recognition of hypernorms; (c) proposals for considering meso or meta norms; (d)␣clarification of the relationship between stakeholder concepts and ISCT; (e) problems with potentially unoccupied moral free space; (f) sources of ethical obligation within the ISCT framework; and (g) the potential role for concepts of stakeholder dialogue and engagement. (shrink)

There is an impressive history associated with the evolution of the concept and definition of corporate social responsibility (CSR). In this article, the author traces the evolution of the CSR construct beginning in the 1950s, which marks the modern era of CSR. Definitions expanded during the 1960s and proliferated during the 1970s. In the 1980s, there were fewer new definitions, more empirical research, and alternative themes began to mature. These alternative themes included corporate social performance (CSP), stakeholder theory, and business (...) ethics theory. In the 1990s, CSR continues to serve as a core construct but yields to or is transformed into alternative thematic frameworks. (shrink)

This paper provides preliminary insights into the process of sense-making and developing meaning with regard to corporate social responsibility (CSR) within 18 Dutch companies. It is based upon a research project carried out within the framework of the Dutch National Research Programme on CSR. The paper questions how change agents promoting CSR within these companies made sense of the meaning of CSR. How did they use language (and other instruments) to stimulate and underpin the contextual essence of CSR? Why did (...) they do that in this particular way? What were the consequences of this approach for shaping the process of CSR in their company? Did their efforts contribute to a new way of thinking and acting or was it merely putting old wine in new barrels? A preliminary conclusion is that change agents use above all linguistic artefacts (words and notions) and carry out practical projects while constructing meaning. Still, the meaning of meaning itself remains highly intangible, situational and personality related. (shrink)

Ethics in the world of business -- Welfare, rights, and justice -- Equality, liberty, and virtue -- Whistle-blowing -- Trade secrets and conflict of interest -- Privacy -- Discrimination and affirmative action -- Employment rights -- Occupational health and safety -- Marketing, advertising, and product safety -- Ethics in finance -- Corporate social responsibility -- Corporate governance and accountability -- International business ethics.

One of the most influential ideas in the field of business ethics has been the suggestion that ethical conduct in a business context should be analyzed in terms of a set of fiduciary obligations toward various “stakeholder” groups. Moral problems, according to this view, involve reconciling such obligations in cases where stakeholder groups have conflicting interests. The question posed in this paper is whether the stakeholder paradigm represents the most fruitful way of articulating the moral problems that arise in business. (...) By way of contrast, I outline two other possible approaches to business ethics: one, a more minimal conception, anchored in the notion of a fiduciary obligation toward shareholders; and the other, a broader conception, focused on the concept of market failure. I then argue that the latter offers a more satisfactory framework for the articulation of the social responsibilities of business. (shrink)

This study investigates the relative attractiveness of production level jobs provided by multinational firms in Mexico's maquiladora industry. We take the position that workers themselves are an important and often overlooked source of information relevant to the controversy focusing on the responsibilities of multinational companies to their employees in the developing world. We conducted interviews with 59 maquila production level workers in the Mexican cities of Cd. Juárez and Chihuahua. Using a relative attractiveness framework that compared maquila jobs to other (...) employment available in the local economy, maquila line and technical workers responded to questions addressing why they were working at a maquila, their work history, the attractiveness of maquila jobs compared to both their prior jobs and the jobs held by friends and family, and whether they planned to continue working in the maquilas. While the responses from maquila workers are diverse, they suggest that maquila jobs provide attractive employment for the economically disadvantaged in Northern Mexico. (shrink)

B. Readings (University in Ruins. Cambridge: Harvard University Press, 1996) argued that universities have abandoned their original project of promoting a national culture and have tried to substitute by embracing globalization, but the vagueness and incoherence of the concept has failed to return purpose to the University. The academic treatment of corporate social responsibility illustrates this dilemma. For a generation after H.R. Bowen (Social Responsibilities of the Businessman. New York: Harper & Row, 1953) founded the field, scholars struggled to fit (...) the concept within a national system of pluralistic power-sharing among a variety of institutions that would define and enforce standards of responsibility necessary for the general good of American society. That understanding changed in the nineteen eighties, shortly after corporate executives had united to an unprecedented degree to direct the power of government in their interests, influence the public agenda, and roll back the power of unions. In response, business ethicists began to reformulate corporate social responsibility as a voluntary practice on the part of these same executives. Since the Kantian and Lockean principles upon which this approach was based were themselves problematic, it is not surprising that the experience gained over the last generation casts doubt on the efficacy of this reliance on voluntary restraint and personal initiative. However, circumstances that include the failure of globalization to deliver on its promises may have changed sufficiently in recent years to revive interest in approaches that acknowledge the importance of countervailing power for encouraging greater corporate social responsibility. (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 essay attempts to develop a new theoretical model for business ethics distinct from the two canonical business‐ethics theories, the stakeholder theory and the shareholder value theory. Milton Friedman argued that because managers are agents of the company's owners, their sole moral responsibility is to maximize owner returns. Thomas Pogge has recently suggested that such a view involves a kind of moral incoherence and that we should reject the efficacy of social arrangements like the principal‐agent relationship in altering moral obligations. (...) Both views fail to give proper account of the dispersal of moral responsibilities in business contexts. We must distinguish “minimal moral obligations” (stemming from justice and rights) from “maximal moral obligations” (stemming from all other moral considerations, including duties of aid, beneficence, and the virtues). Minimal obligations apply to all persons, but maximal obligations can be effected by social arrangements like the owner‐manager relationship. There may be moral obligations incumbent on owners that do not apply to managers. Understanding this distribution of responsibilities enables us to develop a new and attractive model of business ethics––“the ownership model”––which places greater emphasis on the rights and responsibilities of the owners of business than has been traditional in business ethics. (shrink)