Winner of the 1975 National Book Award, this brilliant and widely acclaimed book is a powerful philosophical challenge to the most widely held political and social positions of our age--liberal, socialist, and conservative.

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)

What can reason do for us and what can't it do? This is the question examined by Herbert A. Simon, who received the 1978 Nobel Prize in Economic Sciences "for his pioneering work on decision-making processes in economic organizations." The ability to apply reason to the choice of actions is supposed to be one of the defining characteristics of our species. In the first two chapters, the author explores the nature and limits of human reason, comparing and evaluating the major (...) theoretical frameworks that have been erected to explain reasoning processes. He also discusses the interaction of thinking and emotion in the choice of our actions. In the third and final chapter, the author applies the theory of bounded rationality to social institutions and human behavior, and points out the problems created by limited attention span human inability to deal with more than one difficult problem at a time. He concludes that we must recognize the limitations on our capabilities for rational choice and pursue goals that, in their tentativeness and flexibility, are compatible with those limits. (shrink)

How can we develop a global economic architecture which is efficient, morally acceptable, geographically inclusive, and sustainable over time? If global capitalism -- arguably the most efficient wealth-creating system known to man -- is to be both economically viable and socially acceptable, each of its four constituent institutions must be both technically competent and buttressed by a strong moral ethos. Leading thinkers in international business and ethics identify the pressing moral issues which global capitalism must answer.