Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Business Ethics: A European Review, EarlyView.

The recent proliferation of AI scandals led private and public organisations to implement new ethics guidelines, introduce AI ethics boards, and list ethical principles. Nevertheless, some of these efforts remained a façade not backed by any substantive action. Such behaviour made the public question the legitimacy of the AI industry and prompted scholars to accuse the sector of ethicswashing, machinewashing, and ethics trivialisation—criticisms that spilt over to institutional AI ethics boards. To counter this widespread issue, contributions in the literature have (...) proposed fixes that do not consider its systemic character and are based on a top-down, expert-centric governance. To fill this gap, we propose to make use of qualified informed lotteries: a two-step model that transposes the documented benefits of the ancient practice of sortition into the selection of AI ethics boards’ members and combines them with the advantages of a stakeholder-driven, participative, and deliberative bottom-up process typical of Citizens’ Assemblies. The model permits increasing the public’s legitimacy and participation in the decision-making process and its deliverables, curbing the industry’s over-influence and lobbying, and diminishing the instrumentalisation of ethics boards. We suggest that this sortition-based approach may provide a sound base for both public and private organisations in smart societies for constructing a decentralised, bottom-up, participative digital democracy. (shrink)