We investigate whether the disclosure of a firm’s decision to organize as a benefit corporation (BC) rather than a traditional C corporation (CC) influences investors. We survey 136 investors and 57 MBA students and find that they expect BCs to attain higher future corporate social responsibility (CSR) than CCs even when both have equal CSR ratings. Approximately one third of our sample prefers to invest in BCs when CCs have greater financial returns, indicating a willingness by some investors (...) to sacrifice personal financial gain for social good. Our results suggest that investors weight the information contained in BC disclosures as reliable and value-relevant in their investment decisions. We extend the CSR disclosure literature by indicating how investors weight this new type of CSR information, which may affect how BCs fare as publicly traded companies. (shrink)

The Open Corporation, originally published in 2002, set out a blueprint for effective corporate self-regulation, offering practical strategies for managers, stakeholders and regulators to build successful self-regulation management systems. Christine Parker examined the conditions under which corporate self-regulation of social and legal responsibilities were likely to be effective, covering a wide range of areas - from consumer protection to sexual harassment to environmental compliance. Focusing on the features that make self-regulation or compliance management systems effective, Parker argued that law (...) and regulators needed to focus much more on 'meta-regulating' corporate self-regulation if democratic control over corporate action was to be established. (shrink)

In this article I provide a critical perspective on governing the global corporation. While the papers in the 2009 special issue of Business Ethics Quarterly explore the political role of corporations I argue that they lack a sophisticated analysis of power acrossinstitutional and actor networks. The argument that corporate engagement with deliberative democracy can enhance the legitimacy of corporations does not take into account the effects of institutional, material and discursive forms of power that determine legitimacycriteria. As a result (...) corporate versions of citizenship mediate versions of social responsibility and morality, which are reflected in the institutional and political economic norms that are produced by this power/knowledge. In order to overcome the limits of corporate social responsibility there is a need to develop more democratic forms of global governance of corporations. A radical revisioning of democratic governance would also need to overcome the limits posed by sovereignty and would require new forms of multi-actor and multi-level translocal governance arrangements in an attempt to create forms of power that are more compatible with the principles of economic democracy. (shrink)

Large corporations are coming under intense pressure to act in a socially responsible manner. Corporations have accepted this notion provided that it is exercised voluntarily. It has also been argued that corporations can do well by doing good, and that good ethics is good business. This paper presents an alternative viewpoint by demonstrating that while voluntary socially responsible conduct is desirable, it plays a rather small role in inspiring good corporate conduct. Instead, (a) it is the external economic-competitive conditions that (...) define the parameters and opportunities for good corporate conduct; and (b) the values and traditions of the corporations, and their perceived risk in exploiting those opportunities, that influence the extent of a corporation's socially responsible conduct. The framework presented here analyzes certain market-competitive conditions, which determine the scope and direction of socially responsible corporate conduct, and the instruments available to society to enhance ethical corporate conduct. It suggests that from society's perspective, we should move away from the notion of corporate social responsibility and toward corporate social accountability. Most modern economies operate under conditions of imperfect competition where corporations gain above-normal profits, i.e., market rent, from market imperfections. Therefore, corporations should be held accountable for a more equitable distribution of these above-normal profits with other groups, e.g., customers, employees, etc., who were deprived of their market-based gains because of market imperfections and corporate power. Three approaches are suggested for measuring corporate accountability through corrections. These are: information imbalance, bargaining power imbalance, and, adjudication, remedy and relief imbalance. (shrink)

Diabco Corporation, consisting of both domestic and international operations, aspires to be a world class company. Assumption of that status requires Diabco to develop a profile as a responsible member within the world community. Attributing morality to a corporation may seem somewhat inappropriate because it is merely an artificial entity. Yet, a corporation is only as ethical as its agents. At a minimum, Diabco must meet legal requirements, but the development of moral responsibility requires a conscious effort (...) by all corporate agents to avoid harming others. To appraise the company''s moral condition, the authors constructed the premise that Diabco conducted a comprehensive moral audit. Although the concept of a moral audit is still a relatively undeveloped appraisal activity, the purpose of the study is to demonstrate the desirability, feasibility, and possible inadequacies of such an endeavor. (shrink)

In the canonical view of the corporation, management is the agent of the owners of the corporation-the stockholders-and, as such, has a fiduciary duty to manage the corporation in their best interests. Most business ethicists condemn this arrangement as morally indefensible because it fails to respect the right of other corporate constituencies or “stakeholders” to self-deterrnination. By contrast, the modern agency theory of the firm provides a defense of this arrangement on the grounds that it is the (...) result of stakeholders’ right to self-determination. This paper uses the exarnple of managers’ fiduciary duty to stockholders to argue that different normative judgrnents often mask empirical disagreements. (shrink)

This article presents a response to Néron and Norman’s contention that the language of citizenship is helpful in thinking about the political dimensions of corporate responsibilities. We argue that Néron and Norman’s main conclusions are valid but offer an extension of their analysis to incorporate extant streams of literature dealing with the political role of the corporation. We also propose that the perspective on citizenship adopted by Néron and Norman is rather narrow, andtherefore provide some alternative ways in which (...) corporations and citizenship might be brought together. We conclude by suggesting that, rather than simply applying the concept of citizenship to corporations, we now need to go further in exploring how corporations might play an active role in reconfiguring the whole notion of citizenship itself. (shrink)

This 1993 book discusses the rise of the marginalist conception of the firm in the context of economic thought over the past two centuries, and explains why economists continue to defend a theory with demonstrable shortcomings. Professor Schrader argues that the marginalist view of the firm retains its support not through any comparative advantage in empirical or predictive power, but by virtue of its being a part of the predominant marginalist economic programme. The clear problems that beset the marginalist approach (...) to the firm signal a general dilemma for economic theory as a whole. (shrink)

This article presents a response to Néron and Norman’s contention that the language of citizenship is helpful in thinking about the political dimensions of corporate responsibilities. We argue that Néron and Norman’s main conclusions are valid but offer an extension of their analysis to incorporate extant streams of literature dealing with the political role of the corporation. We also propose that the perspective on citizenship adopted by Néron and Norman is rather narrow, andtherefore provide some alternative ways in which (...) corporations and citizenship might be brought together. We conclude by suggesting that, rather than simply applying the concept of citizenship to corporations, we now need to go further in exploring how corporations might play an active role in reconfiguring the whole notion of citizenship itself. (shrink)

Globalization has increased the economic power of the multinational corporation (MNC), engendering calls for greater corporate social responsibility (CSR) from these companies. However, the current mechanisms of global governance are inadequate to codify and enforce recognized CSR standards. One method by which companies can impact positively on global governance is through the mechanism of Global Public Policy Networks (GPPN). These networks build on the individual strength of MNCs, domestic governments, and non-governmental organizations to create expected standards of behaviour in (...) such areas as labour rights, environmental standards, and working conditions. This article models GPPN in the issue area of CSR. The potential benefits of GPPN include better overall coordination among industry and government in establishing what social expectations the modern MNC will be expected to fill. (shrink)

In the canonical view of the corporation, management is the agent of the owners of the corporation-the stockholders-and, as such, has a fiduciary duty to manage the corporation in their best interests. Most business ethicists condemn this arrangement as morally indefensible because it fails to respect the right of other corporate constituencies or “stakeholders” to self-deterrnination. By contrast, the modern agency theory of the firm provides a defense of this arrangement on the grounds that it is the (...) result of stakeholders’ right to self-determination. This paper uses the exarnple of managers’ fiduciary duty to stockholders to argue that different normative judgrnents often mask empirical disagreements. (shrink)

How do we deal with difference personally, interpersonally, nationally? Can we weave a cohesive social fabric in a religiously plural society without suppressing differences? This collection of significant essays suggests that to truly honour differences in matters of faith and religion we must publicly exercise and celebrate them. The secular/sacred, public/private divisions long considered sacred in the West need to be dismantled if Canada (or any nation state) is to develop a genuine mosaic that embraces fundamental differences instead of a (...) melting pot that marginalizes. An ethics of difference starts with a recognition of difference, not as deviance or deficit that threatens but as otherness to connect with, cherish, and celebrate. The book begins with the suggestion that our inability to come to terms with social plurality is not fundamentally the fault of religious differences, and that a public/private split inadequately deals with matters of basic difference. It then explores how encouraging people to live out their respective faiths may open new possibilities for respectful, honourable, and just negotiations of contemporary dilemmas arising out of the multicultural fabric of Canadian life. Towards an Ethics of Community introduces readers to some of the most challenging and divisive dilemmas we face in this increasingly pluralistic, postmodern world — issues such as family and domestic violence, Aboriginal rights, homosexuality and public policy, and female genital mutilation. This is a book truly global in scope and significance. (shrink)

ABSTRACTGiven the centrality of corporations in distribution of income and wealth studies, discursive constructions of corporate taxation are essential to understanding the production of inequality. The focus of this study is an interview with Apple’s Chief Executive Tim Cook on the Irish state broadcaster, Raidió Teilifís Éireann’s flagship news programme, Morning Ireland, following the ruling by the European Commission on the corporation tax arrangements between Apple Inc. and Ireland. Drawing on a Critical Discourse Analysis approach, a frame analysis is (...) provided. The significance and extent of the EC’s ruling has potential implications for corporation taxation policy, within and beyond the European Union, which provides a timely reflection in the Brexit era and in the context of rising economic nationalism generally. Thus, the discursive construction of this ruling in the media is of importance in understanding how inequality is produced and reproduced, and journalism’s role therein. (shrink)

This paper empirically supports school food as a site of contested values, where corporate interests can come into direct conflict with those of communities. This is a story about the experience of a small group of activist parents going up against a major food service corporation contracted by their school district. The analysis considers their experiences as dedicated and knowledgeable parent activists who, after years of trying to work with employees of the global food service corporation, grow weary, (...) aim to overthrow it, and finally, after a decade, succeed. In response to the parents’ struggles, I apply a food sovereignty lens to school food, introducing the concept of school food sovereignty. I propose that school food sovereignty requires community participation and consideration of the health and welfare of students, environmental sustainability, local economic benefits, cultural congruence, and attention to food-related justice. (shrink)

Can corporations remain socially responsible in today's fiercely competitive global economy? For several decades after World War II, companies like IBM, which exemplified what journalist Robert J. Samuelson called the 'good corporation,' poured forth material comforts and technological ideas while guaranteeing full employment and adequate retirement. In the 1980s all of that changed, as corporations moved to 'downsize' and become lean, mean global competitors. In this collection, thirteen prominent scholars in business ethics, finance, management, and religion and six corporate (...) leaders respond to a new essay by Samuelson that sounds the death knell of the 'good corporation.' They propose new approaches to corporate integrity and social responsibility in the global economy. The book will be useful in corporate workshops and will make an excellent business ethics text in philosophy departments and business schools. (shrink)

Jay Coen Gilbert, co-founder of B Lab, discusses his vision for a “new economy” where business is a “force for good.” In this interview, Coen Gilbert provides an overview of how B Lab’s various initiatives—Certified B Corporations, the B Impact Assessment, B Analytics, GIIRS, and Benefit Corporations—function interdependently to accelerate a culture shift to redefine success in business. Coen Gilbert then focuses on the role of benefit corporations in this larger movement. The benefit corporation is a new legal form (...) of business that requires a corporate purpose dedicated to “general public benefit” and the delivery of demonstrable “material positive impact on society and the environment.” Novel fiduciary and reporting requirements differentiate the benefit corporation from the traditional corporation founded on shareholder primacy. Coen Gilbert explains how the benefit corporation is better suited to create long-term shareholder value as well as sustainable value for society, the environment, and other stakeholders. He addresses critiques of and challenges to the benefit corporation as an agent of change for business. (shrink)

This paper offers a new model of corporate purpose and applies it to the emerging legal form of the benefit corporation. First, corporate purpose is applied to the two currently dominant models of shareholder and stakeholder focus. Both are found inadequate to promote positive social and environmental impact because they remain anchored in a profit-seeking corporate purpose. Second, we offer an alterna­tive model of Integrative Corporate Purpose. Third, we apply ICP to benefit corporations as an ethically superior model for (...) promoting the common good. The benefit corporation offers four advancements: positive duties to stakeholders; legal protections for managers and directors to manage for the common good; a requirement to have a purpose geared toward public benefit; and required report­ing of benefits to stakeholders and the environment. The implications of benefit corporations are discussed within the larger arena of corporate social responsibility. (shrink)

We argue that the stakeholder perspective on corporate social responsibility is in the process of being enlarged. Due to the process of institutional isomorphism, corporations are increasingly adopting organizational features designed to promote proactivity over mere reactivity in their stakeholder relationships. We identify two sources of pressure promoting the emergence of the proactive corporation -- stakeholder activism and the recognition of the social embeddedness of the economy. The final section describes four organizational design dimensions being installed by the more (...) proactive corporations today -- cooperation, participation, negotiation, and direct anticipation. (shrink)