ABSTRACT:Do corporations have a duty to promote just institutions? Agreeing with Hsieh’s recent contribution, this article argues that they do. However, contrary to Hsieh, it holds that such a claim cannot be advanced convincingly only by reference to the negative duty to do no harm. Instead, such a duty necessarily must be grounded in positive obligation. In the search of a foundation for a positive duty for corporations to further just institutions, Stephen Kobrin’s notion of “private political authority” offers a (...) promising connecting point. Political authority implies political responsibility; Political obligation, however, includes more than merely not doing any harm—it is essentially positive obligation. The implications of the new political responsibilities of multinational corporations may even go far beyond the particular duty to promote just institutions; they may be symptomatic for a much more profound shift from an individual to a collective age. (shrink)

ABSTRACT:Do corporations have a duty to promote just institutions? Agreeing with Hsieh’s recent contribution, this article argues that they do. However, contrary to Hsieh, it holds that such a claim cannot be advanced convincingly only by reference to the negative duty to do no harm. Instead, such a duty necessarily must be grounded in positive obligation. In the search of a foundation for a positive duty for corporations to further just institutions, Stephen Kobrin’s notion of “private political authority” offers a (...) promising connecting point. Political authority implies political responsibility; Political obligation, however, includes more than merely not doing any harm—it is essentially positive obligation. The implications of the new political responsibilities of multinational corporations may even go far beyond the particular duty to promote just institutions; they may be symptomatic for a much more profound shift from an individual to a collective age. (shrink)

The twentieth century saw a vigorous debate over the nature of rights. Will theorists argued that the function of rights is to allocate domains of freedom. Interest theorists portrayed rights as defenders of well-being. Each side declared its conceptual analysis to be closer to an ordinary understanding of what rights there are, and to an ordinary understand- ing of what rights do for rightholders. Neither side could win a decisive victory, and the debate ended in a standoff.

The precautionary principle states, roughly, that it is better to take precautionary measures now than to deal with serious harms to the environment or human health later on. This paper builds on the work of Neil A. Manson in order to show that the precautionary principle, in all of its forms, is fraught with vagueness and ambiguity. We examine the version of the precautionary principle that was formulated at the Wingspread Conference sponsored by the Science and Environmental Health Network in (...) 1998. That version fails to indicate who must bear the cost of precaution; what constitutes a threat of harm; how much precaution is too much; and what should be done when environmental concerns and concern for human health pull in different directions. Whether this vagueness is a strength or weakness of the principle depends on what purpose(s) the precautionary principle is supposed to serve. (shrink)

Confucian scholars express skepticism about rights. This skepticism is relevant to managers who face issues about the recognition of workplace rights in a Confucian culture. My essay examines the foundations of this skepticism, and the cogency of potential leading Western liberal responses to it. I conclude that Confucian skepticism is more formidable than liberals have recognized. I attempt to craft an argument that defuses Confucian skepticism about workplace rights while at the same time respecting the moral depth of Confucianism.

In this review, I survey theoretical accounts of exploitation in business, chiefly through the example of low wage or sweatshop labor. This labor is associated with wages that fall below a living wage standard and include long working hours. Labor of this kind is often described as self-evidently exploitative and immoral (Van Natta 1995). But for those who defend sweatshop labor as the first rung on a ladder toward greater economic development, the charge that sweatshop labor is self-evidently exploitative fails (...) adequately to explain the nature of the alleged wrongdoing. While all sides might agree that poor working conditions are unfortunate and undesirable, defenders of sweatshop labor argue that they provide the best available employment alternative for some workers and the best chance at economic development for many low and middle income countries (LMICs). Some defenders of sweatshop labor even embrace the label of exploitation. <br><br>Unless there is a clear, widely understood account by which exploitation is a moral wrong, then charging a practice as exploitative will do little to advance debates over whether and why a practice is morally problematic. A considerable body of work has been developed applying a growing literature on exploitation to sweatshop labor. While many forms of moral wrong are associated with sweatshop labor, I will focus specifically on the worry that low wages allow relatively wealthy employers wrongfully to take advantage of or gain from relatively poor workers, especially in LMICs. In particular, I will focus on instances of alleged exploitation in employment relationships that are voluntary and mutually beneficial. I have two reasons for doing so. First, by restricting this review to voluntary and mutually beneficial instances of exploitation, I can isolate the moral wrong of exploitation from other moral wrongs, especially the wrongs of coercion and outright harms to workers. Second, the focus on mutually beneficial and voluntary relationships will allow for arguments that sweatshop labor is not only not exploitative, but is a morally praiseworthy means of helping to encourage economic growth in poor areas of the world and to provide jobs that pay better and are more stable than any existing alternatives.<br><br>In this review, I aim to accomplish three goals. First, I will provide an overview of the many different uses of the charge of exploitation in business practice through an examination of the uses of the term in the literature on sweatshop labor. While it is often not clear what kind of moral wrong is assumed to take place when the charge of exploitation is used, I will demonstrate that many distinct types of exploitation, connected to distinct moral wrongs, are used in the literature on sweatshop labor and elsewhere in business ethics. Specifically, I will identify two broad categories of exploitation—exploitation as unfairness and exploitation as the mere use of others—with subgroups under each main category of exploitation. Second, I will discuss which of these senses of exploitation are defensible as identifying clear moral wrongs that take place in the context of business and, specifically, sweatshop labor. As I will argue, not all uses of the charge of exploitation are capable of persuasively identifying clear moral wrongs. Moreover, there is not a single, clear type of exploitation that takes place in business but, rather, several distinct forms. Third, I will apply the lessons learned from my exploration of exploitation in sweatshop labor to other specific areas of business. As I will argue, there are multiple viable models of exploitation in the sweatshop literature that can illuminate exploitative practices of relatively well compensated employees, customers, suppliers, and entire communities. <br><br>While discussions of theories of exploitation tend to argue for a single, correct account of this moral wrong, my review of the literature on exploitation in sweatshop labor supports the conclusion that there are multiple defensible accounts of the moral wrong of exploitation. For this reason, those who would charge that a relationship is exploitative should specify the form of exploitation that they believe is taking place. (shrink)

ABSTRACT:This article examines the presuppositions and theoretical frameworks of the “new-wave” “Post-Westphalian” approach to international business ethics and compares it to the more philosophically oriented moral theory approach that has predominated in the field. I contrast one author’s Post-Westphalian political approach to the human rights responsibilities of transnational corporations (TNCs) with my own “Fair Share” theory of moral responsibility for human rights. I suggest how the debate about the meaning of corporate human rights “complicity” might be informed by the fair (...) share theory. While I point out that Post-Westphalians and moral philosophers may have fundamental disagreements about basic concepts such as legitimacy, justice, and democratic deliberation, I conclude that the Post-Westphalians have made a major contribution to the expansion of the field by presenting business ethicists with an opportunity to inform and guide debates about the potential future course of transnational governance. (shrink)

A fundamental question of global business ethics is, “When moral business conduct standards conflict across borders, whose standards should prevail?” Western scholarship and practice tends to depict home country standards as “higher” or more “restrictive”or “well-ordered” than the “lower” standards of emerging market actors. As much as the question appears culturally neutral, many who ask it do so with a culturally-specific lens shaped by prevailing conditions of Western economic strength. However, the dominanteconomic powers of the future are not likely to (...) be the same North American and Western European markets that have reigned supreme in the recent past. As corporations increasingly re-examine their political roles in global governance, we need also to re-examine the moral authority of global ethical norms so they do not merely reflect the dominant ideologies of the most economically powerful market actors. (shrink)

Transnational corporations have become actors with significant political power and authority which should entail responsibility and liability, specifically direct liability for complicity in human rights violations. Holding TNCs liable for human rights violations is complicated by the discontinuity between the fragmented legal/political structure of the TNC and its integrated strategic reality and the international state system which privileges sovereignty and non-intervention over the protection of individual rights. However, the post-Westphalian transition—the emergence of multiple authorities, increasing ambiguity of borders and jurisdiction (...) and blurring of the line between the public and private spheres—should facilitate imposing direct responsibility on transnational firms. Mechanisms for imposing direct responsibility on TNCs are considered including voluntary agreements and international law. However, I conclude that a hybrid public-private regime which relies onnon-hierarchical compliance mechanisms is likely to be both more effective and consistent with the structure of the emerging transnational order. (shrink)

Drawing upon John Rawls’s framework in The Law of Peoples, this paper argues that MNEs have a responsibility to promote well-ordered social and political institutions in host countries that lack them. This responsibility is grounded in a negative duty not to cause harm. In addition to addressing the objection that promoting well-ordered institutions represents unjustified interference by MNEs, the paper provides guidance for managers of MNEs operating in host countries that lack just institutions. The paper argues for understanding corporate responsibility (...) in relation to the specific institutional environment in which MNEs operate. (shrink)

This paper argues that widely accepted understanding of the respective responsibilities of business and government in the post war industrialized world can be traced back to a tacit social contract that emerged following the second world war. The effect of this contract was to assign responsibility for generating wealth to business and responsibility for ensuring the equitable sharing of wealth to governments. Without question, this arrangement has resulted in substantial improvements in the quality of life in the industrialized world in (...) the intervening period. I argue that with advance of economic globalization and the growing power and influence of multi national corporations, this division of responsibilities is not longer viable or defensible. What is needed, fifty years after the United Nations Declaration of Human Rights, is a new social contract that shares responsibilities for human rights and related ethical responsibilities in a manner more in keeping with the vision captured by the post war Declaration. I conclude by suggesting some reasons for thinking that a new social contract may be emerging. (shrink)

The human rights discourse is vitiated by its tendency to reification, a tendency manifest in an ideologically motivated failure to take the reasons for human rights seriously. When a set of rights fall short, in range or strength, of the reasons adduced for them, any claim to the universality and priority of the rights in question is open to the charge of falsification and reification. Such a claim invites immanent critique insofar as a human rights discourse fails to take its (...) own reasons seriously by working out a set of rights commensurate with them. Further critique is necessary if the human rights concept as such can be shown to be incapable of living up to the best reasons for human rights, in the shape, the author argues, of agency-based reasons. These kinds of critique, especially the latter, can serve as an antidote to the reifying tendency of the human rights discourse. (shrink)

This article applies the Kantian doctrine of respect for persons to the problem of sweatshops. We argue that multinational enterprises are properly regarded as responsible for the practices of their subcontractors and suppliers. We then argue that multinationalenterprises have the following duties in their off-shore manufacturing facilities: to ensure that local labor laws are followed; to refrain from coercion; to meet minimum safety standards; and to provide a living wage for employees. Finally, we consider and reply to the objection that (...) improving health and safety conditions and providing a living wage will cause greater harm than good. (shrink)

In “Sweatshops and Respect for Persons” we argued on Kantian grounds that managers of multinational enterprises (MNEs) have the following duties: to adhere to local labor laws, to refrain from coercion, to meet minimum health and safety standards, and to pay workers a living wage. In their commentary on our paper Sollars and Englander challenge some of our conclusions. We argue here that several of their criticisms are based on an inaccurate reading of our paper, and that none of the (...) remaining criticisms successfully challenge our main arguments. By highlighting the shortcomings of their arguments we hope to advance discussion of the ethical treatment of workers in global supply chains. (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)

This article applies the Kantian doctrine of respect for persons to the problem of sweatshops. We argue that multinational enterprises are properly regarded as responsible for the practices of their subcontractors and suppliers. We then argue that multinationalenterprises have the following duties in their off-shore manufacturing facilities: to ensure that local labor laws are followed; to refrain from coercion; to meet minimum safety standards; and to provide a living wage for employees. Finally, we consider and reply to the objection that (...) improving health and safety conditions and providing a living wage will cause greater harm than good. (shrink)

In “Sweatshops and Respect for Persons” we argued on Kantian grounds that managers of multinational enterprises (MNEs) have the following duties: to adhere to local labor laws, to refrain from coercion, to meet minimum health and safety standards, and to pay workers a living wage. In their commentary on our paper Sollars and Englander challenge some of our conclusions. We argue here that several of their criticisms are based on an inaccurate reading of our paper, and that none of the (...) remaining criticisms successfully challenge our main arguments. By highlighting the shortcomings of their arguments we hope to advance discussion of the ethical treatment of workers in global supply chains. (shrink)

Libertarian theories of the normative core of the corporation hold in common the view that is the responsibility of publicity held corporations to return profits to shareholders within the bounds of certain moral side-constraints. Side-constraints may be either weak (grounded in the rules of the game) or strong (grounded in rights). This essay considers libertarian arguments regarding the normative core of the corporation in the context of global capitalism and in the light of actual corporate behavior. First, it is argued (...) the weak side-constraints view is conceptually incoherent when applied in a global context. Second, it is argued that proponents of the libertarian strong side-constraints view lack an adequate theory of rights. Third, both the weak side-constraints view and the strong side-constraints view are shown to be unsatisfactory insofar as they fail to adequately address the coercive power of corporations. The main conclusion of this essay is that a viable libertarian theory of the corporation has yet to be articulated. (shrink)

"The main conclusion of this essay is that it is plausible to conclude that corporations are capable of exhibiting intentionality, and as a result that they may be properly understood as moral agents" (p. 281).