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)

Tobacco companies have started to position themselves as good corporate citizens. The effort towards CSR engagement in the tobacco industry is not only heavily criticized by anti-tobacco NGOs. Some opponents such as the the World Health Organization have even categorically questioned the possibility of social responsibility in the tobacco industry. The paper will demonstrate that the deep distrust towards tobacco companies is linked to the lethal character of their products and the dubious behavior of their representatives in recent decades. As (...) a result, tobacco companies are not in the CSR business in the strict sense. Key aspects of mainstream CSR theory and practice such as corporate philanthropy, stakeholder collaboration, CSR reporting and self-regulation, are demonstrated to be ineffective or even counterproductive in the tobacco industry. Building upon the terminology used in the leadership literature, the paper proposes to differentiate between transactional and transformational CSR arguing that tobacco companies can only operate on a transactional level. As a consequence, corporate responsibility in the tobacco industry is based upon a much thinner approach to CSR and has to be conceptualized with a focus on transactional integrity across the tobacco supply chain. (shrink)

The debate about the appropriate standards for upstream corporate social responsibility of multinational corporations has been on the public and academic agenda for some three decades. The debate originally focused narrowly on “contract responsibility” of MNCs for monitoring of upstream contractors for “sweatshop” working conditions violating employee rights. The authors argue that the MNC upstream responsibility debate has shifted qualitatively over time to “full producer responsibility” involving an expansion from “contract responsibility” in three distinct dimensions. First, there is an expansion (...) of scope from working conditions to human rights and social and environmental impacts broadly defined. Second, there is expansion in depth of this broader responsibility to the whole upstream supply chain without regard to contracting status. Upstream responsibility now includes all suppliers, including direct contractors and the chain of suppliers to such contractors. Finally, the change in CSR scope and depth has led to an evolution of CSR management practice. (shrink)

Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind. Adopting a sensemaking approach, we argue that ethical blindness results from a complex interplay between individual sensemaking activities and context factors.

Past decades have witnessed the growing success of branding as a corporate activity as well as a rise in anti-brand activism. While appearing to be contradictory, both trends have emerged from common sources – the transition from industrial to post-industrial society, and the advent of globalization – the examination of which might lead to a socially grounded understanding of why brand success in the future is likely to demand more than superior product performance, placing increasing demand on corporations with regard (...) to a broader envelop of socially responsible behavior. Directions for strategic and managerial options are suggested. (shrink)

The last years have seen a surge of scandals in financial intermediation. This article argues that the agency structure inherent to most forms of financial intermediation gives rise to conflicts of interest. Though this does not excuse scandalous behavior it points out market imperfections. There are four types of conflicts of interest: personal-individual, personal-organizational, impersonal-individual, and finally, impersonal-organizational conflicts. Analyzing recent scandals we find that all four types of conflicts of interest prevail in financial intermediation.

In this article, we explore how sense of time and sense of place shape the development of organizational sustainability frames (OSFs). Time and place are fundamental cultural assumptions that influence the way organizations form these frames. Given that globalization and digitalization have fundamentally altered how organizations experience and value time and place, we develop a typology of OSF development and theorize how an organization’s sense of time and sense of place interact to shape the content and structure of OSFs. In (...) so doing, we offer a spatiotemporal perspective to the sustainability literature by bringing together previously disconnected research streams on time and place. We also highlight the importance of understanding the origins, not just the outcomes, of OSFs. (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)

In a globalizing world, governments are not always able or willing to regulate the social and environmental externalities of global business activities. Multi-stakeholder initiatives (MSI), defined as global institutions involving mainly corporations and civil society organizations, are one type of regulatory mechanism that tries to fill this gap by issuing soft law regulation. This conceptual paper examines the conditions of a legitimate transfer of regulatory power from traditional democratic nation-state processes to private regulatory schemes, such as MSIs. Democratic legitimacy is (...) typically concerned with input legitimacy (rule credibility, or the extent to which the regulations are perceived as justified) and output legitimacy (rule effectiveness, or the extent to which the rules effectively solve the issues). In this study, we identify MSI input legitimacy criteria (inclusion, procedural fairness, consensual orientation, and transparency) and those of MSI output legitimacy (rule coverage, efficacy, and enforcement), and discuss their implications for MSI democratic legitimacy. (shrink)

ABSTRACT:The purpose of this paper is to critically evaluate the instrumental perspective on Corporate Social Responsibility (CSR) in practice and theory by relying on sociological analyses of a well known organization: the Italian Mafia. Legal businesses might share features of the Mafia, such as the propensity to exploit a governance vacuum in society, a strong organizational identity that demarcates the inside from the outside, and an extreme profit motive. Instrumental CSR practices have the power to accelerate a firm's transition to (...) Mafia status through its own pathologies. The boundaries of such instrumentalism are explored and lessons for future CSR research derived, with specific emphasis on a firm's social and normative embeddedness, taking into account the inherent challenge of regulating corporate behaviour in the global economy. (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)

Abstract:We discuss the role that transnational corporations (TNCs) 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)

In a globalizing world, governments are not always able or willing to regulate the social and environmental externalities of global business activities. Multi-stakeholder initiatives (MSI), defined as global institutions involving mainly corporations and civil society organizations, are one type of regulatory mechanism that tries to fill this gap by issuing soft law regulation. This conceptual paper examines the conditions of a legitimate transfer of regulatory power from traditional democratic nation-state processes to private regulatory schemes, such as MSIs. Democratic legitimacy is (...) typically concerned with input legitimacy (rule credibility, or the extent to which the regulations are perceived as justified) and output legitimacy (rule effectiveness, or the extent to which the rules effectively solve the issues). In this study, we identify MSI input legitimacy criteria (inclusion, procedural fairness, consensual orientation, and transparency) and those of MSI output legitimacy (rule coverage, efficacy, and enforcement), and discuss their implications for MSI democratic legitimacy. (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)

ABSTRACT:Partnerships between companies and NGOs have received considerable attention in CSR in the past years. However, the role of NGO legitimacy in such partnerships has thus far been neglected. We argue that NGOs assume a status as special stakeholders of corporations which act on behalf of the common good. This role requires a particular focus on their moral legitimacy. We introduce a conceptual framework for analysing the moral legitimacy of NGOs along three dimensions, building on the theory of deliberative democracy. (...) Against this background we outline three procedural characteristics which are essential for judging the legitimacy of NGOs as potential or actual partners of corporations. (shrink)

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational (...) and egocentric utility‐maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve. (shrink)

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational (...) and egocentric utility-maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve. (shrink)

In this paper, we take a framing perspective to corporate environmental irresponsibility and focus it on the community of place as one among the most affected, yet rarely examined, stakeholders. In particular, we take a framing microprocess perspective, to study how interactions within a community of place affect a mobilization after corporate environmental irresponsibility. We elicit two framing microprocess, losses display and scale augmentation, and show how they significantly, though differently, affect a mobilization. In so doing, we enrich our understanding (...) of how communities of place mobilize, the types of, and venues, where interactions take place in a community of place—and how these affect a mobilization. (shrink)

While considerable attention has been given to the harm done to consumers by marketing, less attention has been given to the harm done by consumers as an indirect effect of marketing activities, particularly in regard to supply chains. The recent development of dramatically expanded global supply chains has resulted in social and environmental problems upstream that are attributable at least in part to downstream marketers and consumers. Marketers have responded mainly by using corporate social responsibility (CSR) communication to counter the (...) critique of CSR practice, but these claims of ethical corporate behavior often lack credibility and can result in a backlash against brands. The article argues that more adequate attention to the harmful upstream effects of downstream marketing and consumption decisions requires greater attention to stakeholder marketing and marketer efforts to help create responsible consumers. It concludes by identifying implications for further research in this important emergent area of marketing ethics. (shrink)

During the last years, historic injustices have been on top of the public agenda revolving around the question of how to deal with difficult pasts. This applies togovernments but also to corporations. We aim at addressing this trend of historic corporate responsibility. We examine corporations as intergenerational moral agents, introduce the problem of historic complicity, and propose a concept of historic corporate responsibility.

Consumer surveys confirm two facts: First, consumers are aware of social and ethical side effects of production and consumption. Second, consumers indicate an intention to adapt their consumption behavior. Despite their willingness to change, consumers do not engage in ethical consumption behavior. We assert that the ethical consumer needs to be created and propose two mechanisms how corporations can cocreate the ethical consumer: Influencing external institutional factors and influencing internal psychological factors.

The purpose of this paper is to provoke a debate on the management of social issues building on the analysis of a well known illegal organization, namely theSicilian Mafia. According to the analytical framework provided by Gambetta (1993), the Sicilian Mafia could be considered as a business on its own dealing a specific commodity: the ‘protection of people’. That approach of ‘Mafia as a corporation’ allows investigating the social responsibility of that organization and the way the Mafia managed its key (...) stakeholders. As we will argue, the recent spate of corporate scandals reveals the risk of normal corporations turning into a Mafia type of organization. One of the key drivers of those scandals is the overstretched instrumental interpretation of a corporation's societal responsibilities. By caricaturing and perverting some established practices of the mainstream approach to CSR perspective, we will demonstrate the potential pathologies of a CSR approach that is mainly based on the neoliberal foundation of individual and organizational self-interest. (shrink)

Multinational corporations are operating in complex business environments. They are confronted with contradictory institutional demands that often represent mutually incompatible expectations of various audiences. Managing these demands poses new organizational challenges for the corporation. Conducting an empirical case study at the sportswear manufacturer Puma, we explore how multinational corporations respond to institutional complexity and what legitimacy strategies they employ to maintain their license to operate. We draw on the literature on institutional theory, contingency theory, and organizational paradoxes. The results of (...) our qualitative longitudinal study show that managing corporate legitimacy is a dynamic process in which corporations adapt organizational capacities, structures, and procedures. (shrink)

The article offers a critical assessment of an article on "Corporate Legitimacy as Deliberation" by Guido Palazzo and Andreas Scherer in this journal. We share the concern about the precarious legitimacy of globally active corporations, infringing on the legitimacy of democracy at large. There is no quarrel with Palazzo/Scherer's diagnosis, which focuses on the consequences of globalization and ensuing challenges for corporate social responsibilities. However, we disagree with the "solutions" offered by them. In a first step we (...) refute the idea of a legitimacy of morals, maintaining that morality is a premodern mode of creating legitimacy. Even worse, moral is becoming a dangerous commodity under conditions of fundamental global disagreements and antagonisms. We secondly refute the concept of the "politicized corporation", maintaining that Palazzo/Scherer disregard the consequences of functional differentiation of modern societies and, in particular, disregard the wisdom of political restraint and constitutional guarantees for the autonomy of different spheres of society. Finally, we refute a seemingly romantic notion of deliberation, maintaining that deliberation and deliberative democracy is a worthy idea, which, however, has no place in the real world of globalized contexts. On the other hand, we also find enough common ground and common concern with Palazzo/Scherer to validate a fruitful discourse. (shrink)

The article offers a critical assessment of an article on “Corporate Legitimacy as Deliberation” by Guido Palazzo and Andreas Scherer in this journal. We share the concern about the precarious legitimacy of globally active corporations, infringing on the legitimacy of democracy at large. There is no quarrel with Palazzo/Scherer’s diagnosis, which focuses on the consequences of globalization and ensuing challenges for corporate social responsibilities. However, we disagree with the “solutions” offered by them. In a first step we (...) refute the idea of a legitimacy of morals, maintaining that morality is a premodern mode of creating legitimacy. Even worse, moral is becoming a dangerous commodity under conditions of fundamental global disagreements and antagonisms. We secondly refute the concept of the “politicized corporation”, maintaining that Palazzo/Scherer disregard the consequences of functional differentiation of modern societies and, in particular, disregard the wisdom of political restraint and constitutional guarantees for the autonomy of different spheres of society. Finally, we refute a seemingly romantic notion of deliberation, maintaining that deliberation and deliberative democracy is a worthy idea, which, however, has no place in the real world of globalized contexts. On the other hand, we also find enough common ground and common concern with Palazzo/Scherer to validate a fruitful discourse. (shrink)

ABSTRACT:The profound influence of Thomas Donaldson and Thomas Dunfee’s integrative social contracts theory on the field of business ethics has been challenged by Andreas Scherer and Guido Palazzo’s Habermasian approach, which has achieved prominence of late with articles that expressly question the defensibility of ISCT’s hypernorms. This article builds on recent efforts by Donaldson and Scherer to bridge their accounts by providing discursive foundations to the hypernorms at the heart of the ISCT framework. Extending prior literature, we propose (...) an ISCT* framework designed to retain ISCT’s practical virtue of managerial guidance while answering the demands of Scherer and Palazzo’s discursive account. By subscribing to a suitable portfolio of discursively justified hypernorms, we argue, companies unlock the valuable moral guidance of ISCT*, which says to treat these hypernorms as unequivocal outer bounds to the pursuit of business and as a starting point to tailor local norms through discursive stakeholder engagement. (shrink)

This paper compares three recent prescriptive proposals for practicing capitalism: Accountable Capitalism (Senator Elizabeth Warren), Responsible Capitalism (Professor R. Edward Freeman), and Political Corporate Social Responsibility (Professors Andreas Scherer and Guido Palazzo and colleagues). Warren’s Accountable Capitalism is a corporate governance reform proposal. Freeman’s Responsible Capitalism prescribes effective stakeholder management through entrepreneurial value creation. Political CSR (expanded here to Political Capitalism) is a prescription for democratization inside and outside of businesses and provision of public goods in instances of (...) governmental incompetence. The rationale for this examination is the possibility of political crisis in the relationship between democracy and capitalism. (shrink)

Modal knowledge accounts like sensitivity or safety face a problem when it comes to knowing propositions that are necessarily true because the modal condition is always fulfilled no matter how random the belief forming method is. Pritchard models the anti-luck condition for knowledge in terms of the modal principle safety. Thus, his anti-luck epistemology faces the same problem when it comes to logical necessities. Any belief in a proposition that is necessarily true fulfills the anti-luck condition and, therefore, qualifies as (...) knowledge. Miščević shares Pritchard’s take on epistemic luck and acknowledges the resulting problem. In his intriguing article “Armchair Luck: Apriority, Intellection and Epistemic Luck” Miščević suggests solving the problem by supplementing safety with a virtue theoretic condition-“agent stability”-which he also spells out in modal terms. I will argue that Miščević is on the right track when he suggests adding a virtue-theoretic component to the safety condition. However, it should not be specified modally but rather in terms of performances that manifest competences. (shrink)

In public political deliberation, people will err and lie in accordance with definite patterns. Such discourse failure results from behavior that is both instrumentally and epistemically rational. The deliberative practices of a liberal democracy cannot be improved so as to overcome the tendency for rational citizens to believe and say things at odds with reliable propositions of social science. The theory has several corollaries. One is that much contemporary political philosophy can be seen as an unsuccessful attempt to vindicate, on (...) symbolic and moral grounds, the forms that discourse failure take on in public political deliberation. Another is that deliberative practices cannot be rescued even on non-epistemic grounds, such as social peace, impartiality, participation, and equality. To alleviate discourse failure, this book proposes to reduce the scope of majoritarian politics and enlarge markets. (shrink)

Using data from four different samples of full-time employees (Ntotal = 2,474), the present study was aimed to introduce and demonstrate the validity and reliability of the Organizational-Based General Self-esteem Scale (OB-GSE) a new six-item self-report scale to measure organizational-based self-esteem (OBSE) at work. Results provided evidence of (1) validity (internal, external, and convergent), (2) reliability, and (3) temporal stability of the OB-GSE scale. All in all, results attested the usefulness and the effectiveness of the OB-GSE scale.

In this paper, I defend the heterogeneity problem for sensitivity accounts of knowledge against an objection that has been recently proposed by Wallbridge in Philosophia. I argue in, 479–496, 2015) that sensitivity accounts of knowledge face a heterogeneity problem when it comes to higher-level knowledge about the truth of one’s own beliefs. Beliefs in weaker higher-level propositions are insensitive, but beliefs in stronger higher-level propositions are sensitive. The resulting picture that we can know the stronger propositions without being in a (...) position to know the weaker propositions is too heterogeneous to be plausible. Wallbridge objects that there is no heterogeneity problem because beliefs in the weaker higher-level propositions are also sensitive. I argue against Wallbridge that the heterogeneity problem is not solved but only displaced. Only some beliefs in the weaker higher-level propositions are sensitive. I conclude that the heterogeneity problem is one of a family of instability problems that sensitivity accounts of knowledge face and that Wallbridge’s account raises a further problem of this kind. (shrink)

Hassin recently proposed the “Yes It Can” (YIC) principle to describe the division of labor between conscious and unconscious processes in human cognition. According to this principle, unconscious processes can carry out every fundamental high-level cognitive function that conscious processes can perform. In our commentary, we argue that the author presents an overly idealized review of the literature in support of the YIC principle. Furthermore, we point out that the dissimilar trends observed in social and cognitive psychology, with respect to (...) published evidence of strong unconscious effects, can better be explained by the way how awareness is defined and measured in both research fields. Finally, we show that the experimental paradigm chosen by Hassin to rule out remaining objections against the YIC principle is unsuited to verify the new default notion that all high-level cognitive functions can unfold unconsciously. (shrink)

This article aims to provide a structural analysis of the problems related to the easy knowledge problem. The easy knowledge problem is well known. If we accept that we can have basic knowledge via a source without having any prior knowledge about the reliability or accuracy of this source, then we can acquire knowledge about the reliability or accuracy of this source too easily via information delivered by the source. Rejecting any kind of basic knowledge, however, leads into an infinite (...) regress and, plausibly, to skepticism. The article argues that the third alternative, accepting basic knowledge but rejecting easy knowledge, entails closure failure. This is obviously the case for deductive bootstrapping, but, notably, the problem also arises for inductive bootstrapping. Hence, the set of problems related to the easy knowledge problem has the structure of a trilemma. We are forced to accept easy knowledge, closure failure, or skepticism. (shrink)

European Journal of Philosophy, EarlyView.

First published in 2002. Routledge is an imprint of Taylor & Francis, an informa company.

With the growing interest in trust in the social sciences, this second edition of the Handbook of Research Methods on Trust provides a fully updated and extended account of quantitative, qualitative and mixed methods for empirical research. While many researchers have already drawn inspiration and insight from the previous edition, the dynamic development of trust research calls for further and deeper engagement with methodological issues, particular methods, practical research experience, and current challenges and innovations as offered by this new edition.

In his target article, Morin claims that ideographic codes are exceedingly difficult to use. In my commentary I will show that the use of Bliss symbols does not improve the communicative abilities of aphasic patients with severe language disorders. This failure to remediate communication disorders may result from disruption of inner language allowing to translate ideographic codes into spoken language.

We prove a generalization of Maehara’s lemma to show that the extensions of classical and intuitionistic first-order logic with a special type of geometric axioms, called singular geometric axioms, have Craig’s interpolation property. As a corollary, we obtain a direct proof of interpolation for (classical and intuitionistic) first-order logic with identity, as well as interpolation for several mathematical theories, including the theory of equivalence relations, (strict) partial and linear orders, and various intuitionistic order theories such as apartness and positive partial (...) and linear orders. (shrink)

First published in 2002. Routledge is an imprint of Taylor & Francis, an informa company.

Recent years have yielded many discussions on how to endow autonomous agents with the ability to make ethical decisions, and the need for explicit ethical reasoning and transparency is a persistent theme in this literature. We present a modular and transparent approach to equip autonomous agents with the ability to comply with ethical prescriptions, while still enacting pre-learned optimal behaviour. Our approach relies on a normative supervisor module, that integrates a theorem prover for defeasible deontic logic within the control loop (...) of a reinforcement learning agent. The supervisor operates as both an event recorder and an on-the-fly compliance checker w.r.t. an external norm base. We successfully evaluated our approach with several tests using variations of the game Pac-Man, subject to a variety of “ethical” constraints. (shrink)