I address three topics. First, I argue that the issue of corporate moral responsibility is an important one for business ethics.Second, I examine a core argument for the claim that the corporate organization is a separate moral agent and show it is based on anunnoticed but elementary mistake deriving from the fallacy of division. Third, I examine the assumptions collectivists make about whatit means to say that organizations act and that they act intentionally and show that these assumptions are mistaken (...) in their failure to understand the nature of intentional causality and of “as-if” intentionality. In exposing these mistakes I set out my own view in the form oftwo theses, the first of which states that individual members of an organization are always causally responsible for any corporate act,and the second of which states that attributions of intentions to corporations are always either descriptive or prescriptive attributionsof “as if” intentionality. (shrink)

While organizational learning literature has generated significant insight into the effective and efficient achievement of organizational goals as well as to the modus of learning, it is currently unable to describe moral learning processes in organizations consistently. Corporations need to learn morally if they want to deal effectively with stakeholders criticizing their conduct. Nongovernmental organizations do not ask corporations to be more effective or efficient in what they do, but to become more responsible or to learn morally. Current research on (...) the moral aspect of organizational learning has been primarily of a theoretical nature and is in need of empirical verification. Results of a longitudinal case study as Citigroup’s conflict with the Rainforest Action Network show that current organizational moral learning theories do not fit the moral learning path observed at Citigroup. More empirical research is needed to describe organizational moral learning. (shrink)

According to peter french, A corporation can be construed as a moral person in the same sense that you and I are persons. Whether this view is tenable is an open question. I examine the objections to this view made in the recent literature and find them wanting. I deal with the questions whether corporations can have intentions, Rights, And consciousness.

Much has been written about what corporations owe society and whether it is appropriate to hold them responsible. In contrast, little has been written about whether anything is owed to corporations apart from what is owed to their members. And when this question has been addressed, the answer has always been that corporations are not worthy of any distinct moral consideration. This is even claimed by proponents of corporate agency. In this paper, I argue that proponents of corporate agency should (...) recognize corporations as worthy of moral consideration. Though particular views of moral status are often taken for granted in the literature, corporations can satisfy many views of moral status given the capacities often ascribed to them. They can even meet the conditions of the views assumed. I conclude by suggesting that recognizing the moral status of corporations may not be as drastic or harmful as we might imagine. (shrink)

This essay provides a critical overview of the debate about corporate moral responsibility. Parties to the debate address whether corporations are the kinds of entities that can be blamed when they cause unjustified harm. Proponents of CMR argue that corporations satisfy the conditions for moral agency and so they are fit for blame. Their opponents respond that corporations lack one or more of the capacities necessary for moral agency. I review the arguments on both sides and conclude ultimately that what (...) divides the two is not so much competing conceptions of the corporation as it is disagreement about what moral agency requires. Homing in on the real site of contention will, it is hoped, allow future participants in the debate to focus their efforts more productively. (shrink)

ABSTRACT This paper examines the claim that what is ‘really’ good for business will in the end harmonize with the requirements of morality. In searching for a plausible interpretation of what might be ‘really’ good for a business enterprise, the paper explores analogies to traditional philosophical accounts of the ‘true good’ of man. The conclusion is that while such accounts can make sense of the claim that a person's true good requires a moral commitment, they can suggest no solution applicable (...) to business. The reason is that the analogy between natural persons and business enterprises breaks down at a crucial point. It follows that any radical improvement in the moral quality of business activity cannot come from appealing to a ‘true good’ of business. And since external means of control are not sufficient, the paper concludes that we must rely on the moral motivation of individuals filling positions in business. What is indicated then is the need for a strengthened consciousness of the range of freedom and responsibility of persons in their work roles. (shrink)

We present asecond-personalaccount of corporate moral agency. This approach is in contrast to thefirst-personalapproach adopted in much of the existing literature, which concentrates on the corporation’s ability to identify moral reasons for itself. Our account treats relationships and communications as the fundamental building blocks of moral agency. The second-personal account rests on a framework developed by Darwall. Its central requirement is that corporations be capable of recognizing the authority relations that they have with other moral agents. We discuss the relevance (...) of corporate affect, corporate communications, and corporate culture to the second-personal account. The second-personal account yields a new way to specify first-personal criteria for moral agency, and it generates fresh insights into the reasons those criteria matter. In addition, a second-personal analysis implies that moral agency is partly a matter of policy, and it provides a fresh perspective on corporate punishment. (shrink)

Ethicists and legal theorists have proposed models of corporate culpability that shift the standard of guilt determination from vicariousattribution of individual action and intention to an assessment of culture, policies, as well as organizational action and inaction. This paper briefly reviews four prominent models of corporate culpability, arguing that each makes claims that extend well beyond the limits of existing law. As an alternative to these models, a constructive corporate fault is described that relies on both objective and subjective reasonableness (...) judgments. The paper concludes with a consideration of constructive corporate fault in relation to an Accountability model of corporate liability. (shrink)

Abstract:This paper explores an ontological approach to the issue of whether corporations, like individuals, are morally responsible for their actions. More specifically, we investigate the identity of organizations relative to the individuals that compose them. Based on general systems theory, the traditional assumption is that social collectives are more complex, variable, and loosely coupled than individuals. This assumption rests on two premises. The first is a view of the individual as simple, stable, and tightly coupled (i.e., unitary). The second premise (...) is that the relationship between social collectives and their members is characterized by the complete inclusion of individuals in higher order systems.We examine the social science literature that bears on these premises and conclude that they are false. The differences between organizations and individuals in the magnitude of complexity or variability appear to be minimal or nonexistent. An implication of our analysis is that individuals and organizations are coterminous and, therefore, inseparable as moral agents. (shrink)

Moral responsibility for outcomes in corporate settings can be ascribed either to the individual members, the corporation, or both. In the latter case, the relationship between individual and corporate responsibility has been approached as inversely proportional, such that an increase in individual responsibility leads to a corresponding decrease in corporate responsibility and vice versa. In this article, we develop a non-proportionate approach, where, under specific conditions, individual and corporate moral responsibilities interact dynamically, leading to a mutual enhancement of responsibility: the (...) more the corporation is responsible, the more the individuals become responsible and vice versa. We develop this mutually enhancing approach in terms of normative ascriptions of responsibility, while leaving aside empirical implications in terms of mutual awareness of responsibility between individuals and corporations. We explore conceptually the conditions and mechanisms that generate this mutual enhancement and also discuss the implications for research and practice. (shrink)

This paper responds to the popular argument that business is like a game and is thus insulated from the demands of morality. In the first half of the paper, I offer objections to this argument as it is put forward by John Ladd in his well-known article, Morality and the Ideal of Rationality in Formal Organizations. I argue that Ladd''s analysis is flawed both because it deprives us of the ability to assert that a business is acting badly or that (...) its goals are irrational, and because it is internally inconsistent. In the second half of the paper, I give reasons for thinking that business is not like a game. (shrink)

In his 2007 Ethics article, “Responsibility Incorporated,” Philip Pettit argued that corporations qualify as morally responsible agents because they possess autonomy, normative judgment, and the capacity for self-control. Although there is ongoing debate over whether corporations have these capacities, both proponents and opponents of corporate moral agency appear to agree that Pettit correctly identified the requirements for moral agency. In this article, I do not take issue with either the claim that autonomy, normative judgment, and self-control are the requirements for (...) moral agency or the claim that corporations possess them. I claim that if both of these claims are correct, then corporate moral agency entails that, in a liberal democracy, corporations should have the right to vote. I show that under the conception of democracy supported by most liberal political theorists, all parties subject to the law are entitled to the right to vote, and all parties that possess autonomy, normative judgment, and self-control are subject to the law. Therefore, if the proponents of corporate moral agency are correct, then corporations satisfy the requirements for the right to vote. I then consider potential objections to this argument. I show that the strongest objection to the corporate right to vote is undermined by Pettit’s own argument for corporate autonomy. I then show that objections derived from other arguments for limiting the rights of corporations are equally unavailing. I conclude with some observations about the implications of my argument for the question of corporate speech rights. (shrink)

The academic debate over the propriety of attributing moral responsibility to corporations is decades old and ongoing. The conventional approach to this debate is to identify the sufficient conditions for moral agency and then attempt to determine whether corporations possess them. This article recommends abandoning the conventional approach in favor of an examination of the practical consequences of corporate moral responsibility. The article’s thesis is that such an examination reveals that attributing moral responsibility to corporations is ethically acceptable only if (...) it does not authorize the punishment of corporations as collective entities, and further, that this renders the debate over corporate moral responsibility virtually pointless. (shrink)

Corporations despite their status as legally fictitious persons are not such, and to confound them with real persons in even the minimal legal sense is to negate much of the force of the concept of rights when applied to the society. When corporations have rights individual rights become meaningless. While corporations may need some form of protection to make them financially feasible investments, they need not be given the full protection of rights which are assigned to the individual. A much (...) attenuated version of corporate rights is warranted. I would argue against Werhane's notion of a corporation possessing “secondary rights” which can be asserted only after the claims of individual rights have been met. Ibid., p. 62.One solution to the problems raised in this essay would be to ascribe rights to individuals only. This could occur without interfering with the financial independence of the corporation by a simple legal prescription that individuals within a corporation be held responsible for their activities and that the corporation p e r se not be blamed for individual actions. This is consistent with the judgments against the Nazi war criminals who were denied the defense of justifying their actions on the basis of following orders. Responsibility for those actions which are the result of the workings of the “invisible hand” cannot be ascribed to any individual or group of individuals. Donaldson is helpful on this point in recommending an “office of social responsibility” be created as part of the corporation to monitor those actions which otherwise escape scrutiny. Donaldson, Corporations and Morality, p. 207.A more radical solution is to restructure the corporation in such a way as to introduce the element of democracy in the workplace. Opponents would argue that such a practice would diminish the profit-making potential of the corporation by limiting the discretion of the corporate officers in making decisions. Similar arguments have been advanced against the democratic state. Yet democratic states have proven to be viable institutions capable of effective action and demonstrably more survivable than the authoritarian regimes which are the analogs of the corporation.Given the current hierarchical structure of the corporation and its ability to dissolve in the face of questions of responsibility, individual accountability is the only viable solution. This requires that members of the corporation not find cover behind the “invisible hand.” This in turn necessitates the granting of a greater degree of discretionary power to corporate functionaries at all levels. We cannot be responsible for a state of affairs over which we have no effective control. The courts would make the ultimate decision as to the assignation of responsibility in particular cases of corporate crime, with the stipulation that the ascription be to an individual and not “the corporation.” By making corporate officers individually responsible for their actions a much more effective deterrent to corporate crimes would be created. Corporations can easily afford most of the fines that are imposed on them, and corporations cannot be put in prison.The view of the corporation advanced here puts it in a legal and moral position greatly inferior to that of the individual as well as the state. Consequently, corporate needs and welfare must remain a tertiary concern. The rights of the individual must figure primarily, and the welfare of the state as preserver of those rights secondarily, in social policy decisions. The libertarian vision of the corporation is therefore a misguided result of the conflation of the corporation and the individual in the legal and moral realms. Corporations and individuals are ontologically distinct entities and must be recognized as such. The failure to do so has enabled corporations to abrogate individual rights with legal and moral impunity. Such a situation is inconsistent with the demands of a rights-based democracy. (shrink)

This paper applies theory and research examining errors in complex organizational systems to the problem of individual and collective morality in organizations. It is proposed that because of the nature of complex organizations, unjust outcomes can (and will) result from organizational actions even when all organization members have acted responsibly. The argument that complex organizations are therefore immoral is considered and rejected. Instead, the paper argues that morality in complex organizations begins with "heedful interrelating" among individual organization members. The paper (...) concludes with a discussion of organizational processes and structures that promote heedful interrelating. (shrink)

Integrating "ethics all the way through" an organization suggests that the issue of moral agency and the corporation be reconsidered. Is the corporation a moral agent in some sense or is it no more than the people who are a part of the organization? Views which stress the role of the individual lose sight of the whole corporate entity, and views which think of the corporation as a collective lose sight of the individual. A view which rejects both these alternatives (...) sees the corporation as a type of community where there is a dynamic tension between the corporation as a whole and the individuals who are part of the organization. This view has implications relative to the focus of efforts to integrate ethics throughout an organization. (shrink)

Most business ethicists maintain that corporate actors are subject to a variety of moral obligations. However, there is a persistent and underappreciated concern that the competitive pressures of the market somehow provide corporate actors with a far-reaching excuse from meeting these obligations. Here, we assess this concern. Blending resources from the history of philosophy and strategic management, we demonstrate the assumptions required for and limits of this excuse. Applying the idea of ‘the state of nature’ from Thomas Hobbes, we suggest (...) that corporate actors would be excused from duties if complying with them threatened their vital interests. We show how this excuse is not available for most individuals within firms; instead, it is an excuse perhaps available to firms themselves, but only given substantive assumptions about corporate personhood. For those willing to make these assumptions, we apply the competitive advantage construct to delimit the scope of this excuse. We suggest that firms are excused from fulfilling an obligation when complying leads to a competitive disadvantage, as this imperils the firm’s vital interests. After revealing why this excuse does not generalize, we conclude by considering when we should reform the market to avoid the legitimacy of this excuse. (shrink)

When we deal with complex things, like human subjects or organizations, we deal with identity – that which makes a person or an organization what it is and distinguishes him/her/it from other persons or organizations, a kind of “self”. Our identity determines how we think about and interact with others. It will be argued in this chapter that the self is constituted relationally. Moreover, when we are in the realm of the self, we are always already in the realm of (...) engaging with and mediating differences – the realm of ethics. The position which will be developed argues that approaching identity as a complex system allows us to resist thinking of identity as an easily identifiable and static entity. Identity is always being constituted within a complex and contingent world, where we have to make choices based on contingent values rather than on universal knowledge or the outcome of rational calculations. As a result, we have to keep in mind that our daily practices always already have an ethical component, and our decisions need to be continually evaluated and re-evaluated in the light of our (and others’) varying identities. (shrink)

It is rather natural to suppose that what we mean when we say that an institutional organization has a moral duty is parallel to whatever it is that we mean when we say that an individual has a duty. I challenge this interpretation on the grounds that it assumes that institutional organizations possess those characteristics or abilities requisite for moral agency—an assumption which I argue is highly suspicious. Against such an interpretation, I argue that we have very good reasons to (...) suppose that the term 'has a duty' is used equivocally across individual and institutional contexts. In other words, the meaning of an institutional duty-claim is quite different than that of an individual duty-claim, so much so that we ought to recognize that institutional duty-claims are not really duty-claims at all. (shrink)

Within much contemporary social ontology there is a particular methodology at work. This methodology takes as a starting point two or more asocial or atomic individuals. These individuals are taken to be perfectly functional agents, though outside of all social relations. Following this, combinations of these individuals are considered, to deduce what constitutes a social group. Here I will argue that theories which rely on this methodology are always circular, so long as they purport to describe the formation of all (...) social groups, as they must always presuppose a pre-existing collectivity. Such methodology also produces various distortions in our theories, such as voluntarism. I focus on the workings of Plural Subject Theory as laid out by Margaret Gilbert in On Social Facts. I show that the formation of a plural subject always requires communication, and that communication always requires a pre-existing collectivity. i examine the elements within Plural Subject Theory which protect gilbert from these accusations of circularity, and argue against them. I finalise by suggesting that what Plural Subject Theory, and social ontology in general, requires as a theoretical starting point is not atomic individuals and their combinations, but rather combinations of already socialised or embedded individuals. (shrink)

We commonly attribute to states and other institutional organizations moral duties and obligations. For example, it is widely held that the state has a moral duty to protect its citizens from external threats and it is claimed that it ought to positively promote the welfare of its members. When we focus on the surface grammar of such institutional duty-claims, we see that they seem to differ from individual duty-claims only with respect to the subject of the claim. Whereas an institutional (...) duty-claim asserts that an institution has a duty to do some action a, an individual duty-claim asserts that a particular individual person has a duty to a. For example, we might claim that parents ought to protect their children, or that a particular person, Doe, ought to take better care of his child. Many scholars have argued or at least assumed that institutions are ultimately just collections of individuals, and hence institutional duty-claims can be analyzed in terms of claims about individuals' duties and obligations. Other scholars have rejected this reductive approach to institutional duty-claims as well as the individualist assumption upon which it is premised--viz., that institutions are nothing "over and above" individuals. Instead, it is argued that at least some institutional organizations are moral agents in their own right which have duties and obligations that are uniquely their own. According to this antireductive holist approach, at least some institutional duty-claims resist being analyzed into claims about individuals' duties and obligations. My aim in this dissertation is to clarify what is meant when we assert that the state has moral duties, and I do so by entering into dialogue with both the reductive individualist and antireductive holist views. In Chapter One I situate and motivate my project by reference to two well-known debates in which claims about the state's duties play an inescapably central role; viz., the debate concerning the propriety of using so-called "enhanced interrogation techniques" in the War on Terror and the debate surrounding the most recent reforms to the health care system here in the United States. Since my aim is to shed light on the meaning of and truth-makers for institutional duty-claims, I devote Chapter Two to the task of clarifying what we mean and imply when we advance duty-claims in what we may assume to be paradigmatic circumstances: namely, those circumstances in which an individual is said to have a duty to do something or another. I then frame the further investigation into the meaning and significance of institutional duty-claims as one which has the aim of revealing whether the phrase 'has a duty' has a univocal, analogous, or equivocal signification across institutional and individual contexts. In Chapter Three I take up the task of characterizing and distinguishing the relevant reductive individualist and antireductive holist viewpoints, considering both historically significant and contemporary versions of each. In Chapter Four I present and critically evaluate a rather influential argument in favor of institutional moral agency, which, if true, would vindicate the antireductive holist approach. I conclude that chapter by arguing that, contrary to the claims made by those who defend institutional agency, we are unjustified in believing that institutions possess those properties requisite for moral agency. Having set aside what I take to be a "best-case" for an antireductive holism, I turn, in Chapter Five, to the task of making plausible the reductive individualist approach. In doing so, I propose that some institutional duty-claims actually resist reduction to claims about individuals' duties and that such claims are thus better understood as claims about the extrinsic value of an institutional arrangement. (shrink)