As I write this, in November 1971, people are dying in East Bengal from lack of food, shelter, and medical caxc. The suffering and death that are occurring there now axe not inevitable, 1101; unavoidable in any fatalistic sense of the term. Constant poverty, a cyclone, and a civil war have turned at least nine million people into destitute refugees; nevertheless, it is not beyond Lhe capacity of the richer nations to give enough assistance to reduce any further suffering to (...) very small proportions. The decisions arid actions of human beings can prevent this kind of suffering. Unfortunately, human beings have not made the necessary decisions. At the individual level, people have, with very few exceptions, not responded to the situation in any signihczmt way. Generally speaking, people have not given large sums to relief funds; they have not written t0 their parliamentaxy representatives demanding increased government assistance; they have not demonstrated in the streets, held symbolic fasts, or done anything else directed toward providing thc refugees with the means to satisfy their essential needs. At thc government level, no govcrmmcnt has given the sort of massive aid that would enable the refugees to survive fm: more than a few days. Britain, for instance, has given rather more than most countries. It has, to date, given £14,750,000. For comparative purposes, B1~itain’s share of thc nonreccverabla development costs of the Anglo-French Concorde project is already in excess of £275,000,000, and on present estimates will reach £440,000,¤00. The implication is that the British government values a supersonic transport more than thirty times as.. (shrink)

Previous edition, 1st, published in 1971.

What morality requires of us in a world of poverty and inequality depends both on what our duties are in the abstract, and on what we can do to help. T.M. Scanlon's contractualism addresses the first question. I suggest that contractualism isolates the moral factors that frame our deliberations about the extent of our obligations in situations of need. To this extent, contractualism clarifies our common-sense understanding of our duties to distant others. The second, empirical question then becomes vital. What (...) we as individuals need to know is how to fulfil our duties to the distant poor. Moral theorists tend to base their prescriptions on simple assumptions about how the rich can help the poor. Yet a survey of the empirical literature shows how urgently we need more information on this topic before we can know what contractualist morality — or any plausible morality — requires of us. Key Words: Scanlon • contractualism • global justice • global poverty • aid effectiveness. (shrink)

Properly speaking, the corporation, considered as an entity distinct from its members, cannot be morally responsible for wrongful corporate acts. Setting aside (in this abstract) acts brought about through negligence or omissions, we may say that moral responsibility for an act attaches to that agent (or agents) in whom the act "originates" in this sense: (1) the agent formed the (mental) intention or plan to bring about that act (possibly with the help of others) and (2) the act was intentionally (...) brought about through bodily movements over which that agent had direct control (i.e. the kind of direct mental control that I have over the body I refer to as "my" body) and through which the agent carried out his (mental) intention or plan. Corporate acts do not thus originate in some corporate entity distinct from its members because the corporation has neither a mind to form intentions nor a body it directly controls: it lacks the proper mind/body unity. Instead, corporate acts originate in individual autonomous human beings who make up the corporation and who intentionally bring about corporate acts through their own bodily movements. Such human individuals, and not "the corporation," are morally responsible for corporate acts. Moreover, to say that an entity is "morally responsible" for a wrongful act is to say that the entity is liable to blame and punishment. But it is not possible to impose blame and punishment on a corporation without inflicting it on corporate members. Thus, to say that a corporation (as an entity distinct from its members) is "morally responsible" for a wrongful corporate act is to imply that a (possibly innocent) corporate member legitimately may be punished for something for which another entity was morally responsible. This violates the moral principles that underlie blame and punishment. To hold that the corporation can be morally responsible for its acts is to adopt a dangerous organicism. (shrink)

I evaluate the adequacy of the three models of international business ethics that have been recently proposed by Thomas Donald son, Gerard Elfstrom and Richard De George. Using the example of the conduct of the aluminum companies in Jamaica, I argue that these three models fail to address the most important of the ethical issues encountered by multinationals because they focus too narrowly on human rights issues and on utilitarian considerations. In addition I argue that these models also evidence an (...) inadequate understanding of microeconomic theory. I end by proposing that these defects can be remedied by a model of ethics that incorporates a theory of moral rights, a utilitarian-based theory of the market, and a theory of justice. (shrink)

I evaluate the adequacy of the three models of international business ethics that have been recently proposed by Thomas Donald son, Gerard Elfstrom and Richard De George. Using the example of the conduct of the aluminum companies in Jamaica, I argue that these three models fail to address the most important of the ethical issues encountered by multinationals because they focus too narrowly on human rights issues and on utilitarian considerations. In addition I argue that these models also evidence an (...) inadequate understanding of microeconomic theory. I end by proposing that these defects can be remedied by a model of ethics that incorporates a theory of moral rights, a utilitarian-based theory of the market, and a theory of justice. (shrink)

The author sets out a realist defense of the claim that in the absence of an international enforcement agency, multinational corporations operating in a competitive international environment cannot be said to have a moral obligation to contribute to the international common good, provided that interactions are nonrepetitive and provided effective signals of agent reliability are not possible. Examples of international common goods that meet these conditions are support of the global ozone layer and avoidance of the global greenhouse effect. Pointing (...) out that the conclusion that multinationals have no moral obligations in these areas is deplorable, the author urges the establishment of an international enforcement agency. (shrink)

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)

A study was conducted in order to examine the relationship between corporate codes of ethics and behaviour. Fifty-seven interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The study found that codes of ethics are a potential factor influencing the behaviour of corporate agents. Reasons are provided why codes are violated as well as complied with. A set of eight metaphors are developed which help to explain how codes of ethics influence behaviour.

The study examines employee, managerial, and ethics officer perceptions regarding their companies codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with (...) respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating ones performance review to compliance with the code. (shrink)

Moral universalism centrally involves the idea that the moral assessment of persons and their conduct, of social rules and states of affairs, must be based on fundamental principles that do not, explicitly or covertly, discriminate arbitrarily against particular persons or groups. This general idea is explicated in terms of three conditions. It is then applied to the discrepancy between our criteria of national and global economic justice. Most citizens of developed countries are unwilling to require of the global economic order (...) what they assuredly require of any national economic order, for example, that its rules be under democratic control, that it preclude life-threatening poverty as far as is reasonably possible. Without a plausible justification, such a double standard constitutes covert arbitrary discrimination against the global poor. Key Words: contextualism • corruption • discrimination • Rawls • resource exports • world poverty. (shrink)

Accounts of international or global justice often focus primarily on the rights or goods to be enjoyed by all human beings, rather than on the obligations that will realise and secure those rights and goods, or on the agents and agencies for whose action obligations of justice are to be prescriptive. In the background of these approaches to international or global justice there are often implicit assumptions that the primary agents of justice are states, and that all other agents and (...) agencies are secondary agents of justice, whose main contribution to justice will be achieved by conforming to the just requirements of states. This background picture runs into difficulties when states are either unjust or weak. The problems posed by unjust states have been widely noted, but the distinctive problems weak states create are less commonly discussed. In this paper I shall consider some reasons for and against viewing states as primary agents of justice, and will focus in particular on the importance of recognising the contribution to justice that other agents and agencies can make when states are weak. (shrink)

Everyone knows that something has gone wrong, in the United States, with the conventions of privacy. Along with a vastly increased tolerance for variation in sexual life we have seen a sharp increase in prurient and censorious attention to the sexual lives of public figures and famous persons, past and present. The culture seems to be growing more tolerant and more intolerant at the same time, though perhaps different parts of it are involved in the two movements.

Business codes are an oft-cited management instrument. But how common are codes among multinationals? And what is their content? In an unprecedented study, the codes of the largest corporations in the world have been collected and thoroughly analyzed. This paper presents the results of that study. Of the two hundred largest companies in the world, 52.5% have a code. More than half of these codes describe company responsibilities regarding quality of products and services (67%), adherence to local laws and regulations (...) (57%) and the protection of the natural environment (56%). Many codes make reference to principles governing stakeholder relations (e.g. transparency (55%), honesty (50%) and fairness (45%)), corporate core values (e.g. teamwork (43%)), appropriate conduct among employees (e.g. discrimination (44%) and intimidation (43%)) and treatment of company property by employees (e.g. conflict of interests (52%), corruption (46%) and fraud (45%)). Monitoring compliance with the code is addressed in 52% of the codes. Based on this content study, three types of codes are distinguished: the stakeholder statute (72%), the values statement (49%) and the code of conduct (46%). The results of this inquiry present a benchmark for the evaluation and development of both individual and international business codes. (shrink)

Although it is suggested that an important role for codes of ethics is to influence decision making, the little research into the impact of codes of ethics on decisions finds little impact. Insights from information economics help to explain this. If an individual will select the action that a code of ethics indicates to be ethical in the absence of a code, then expressing that position in a code of ethics will have no impact on the action chosen. Even if (...) the individual will select the action that a code of ethics indicates to be unethical in the absence of a code, the presence of a statement in the code of ethics must cause the individual's beliefs to change enough so that he or she changes actions. This can be a fairly high obstacle. Enforcement provisions can increase the likelihood that an individual will select the action that a code of ethics indicates to be ethical. There are limits, however, as to how effective enforcement provisions can be. Therefore, although there may be other important goals for a code of ethics, having an impact on decision making is one that is often difficult to achieve. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

This article challenges an argument from Tom Donaldson''s recent bookThe Ethics of International Business with a claim that distributive justice, deemed in many circles to impose a duty of mutual aid on individuals and nations, establishes a basis for holding multinational corporations to such a duty as well. The root idea I advocate is that Rawls'' theory of justice can be deployed — beyond its original intent yet in line with its spirit — to underwrite aprima facie obligation of international (...) business to render aid to ameliorate suffering on behalf of the inhabitants of developing countries in which they operate. (shrink)

Building on John Rawls’s account of the Law of Peoples, this paper examines the grounds and scope of the obligations of transnational corporations (TNCs) that are owned by members of developed economies and operate in developing economies. The paper advances two broad claims. First, the paper argues that there are conditions under which TNCs have obligations to fulfill a limited duty of assistance toward those living in developing economies, even though the duty is normally understood to fall on the governments (...) of developed economies. Second, by extending Rawls’s account to include a right to protection against arbitrary interference, the paper argues that TNCs can be said to have negative and positive obligations in the areas of human rights, labor standards, and environmental protection, as outlined in the U.N. Global Compact. More generally, the paper aims to further our understanding of the implications of Rawls’s account of justice. (shrink)

Building on John Rawls’s account of the Law of Peoples, this paper examines the grounds and scope of the obligations of transnational corporations (TNCs) that are owned by members of developed economies and operate in developing economies. The paper advances two broad claims. First, the paper argues that there are conditions under which TNCs have obligations to fulfill a limited duty of assistance toward those living in developing economies, even though the duty is normally understood to fall on the governments (...) of developed economies. Second, by extending Rawls’s account to include a right to protection against arbitrary interference, the paper argues that TNCs can be said to have negative and positive obligations in the areas of human rights, labor standards, and environmental protection, as outlined in the U.N. Global Compact. More generally, the paper aims to further our understanding of the implications of Rawls’s account of justice. (shrink)

:Building on John Rawls’s account of the Law of Peoples, this paper examines the grounds and scope of the obligations of transnational corporations that are owned by members of developed economies and operate in developing economies. The paper advances two broad claims. First, the paper argues that there are conditions under which TNCs have obligations to fulfill a limited duty of assistance toward those living in developing economies, even though the duty is normally understood to fall on the governments of (...) developed economies. Second, by extending Rawls’s account to include a right to protection against arbitrary interference, the paper argues that TNCs can be said to have negative and positive obligations in the areas of human rights, labor standards, and environmental protection, as outlined in the U.N. Global Compact. More generally, the paper aims to further our understanding of the implications of Rawls’s account of justice. (shrink)

Private firms are uniquely positioned to provide significant relief to the misery that pervades the developing world. Global misery has persisted due to a variety of failures in the provision of relief by nation-states and non-governmental organizations, including corruption and the absence of strong background institutions in the countries in need of aid. In many situations, private firms have a comparative advantage over these entities in the provision of aid. Examples such as Merck and the cure for river blindness show (...) how firms can use their specific competencies and knowledge to relieve misery through Direct Corporate Humanitarian Investment (DCHI). DCHI is legitimized by marketplace morality and is consistent with the role of business within society, including legal dimensions. Shareholders may formally approve a corporation’s DCHI strategy and all stakeholders may act in support of their moral desires with respect to the firm and its DCHI strategy. (shrink)

Book reviewed in this article: Protecting The Vulnerable: A Reanalysis of Our Social Responsibilities. By Robert E. Goodin. Chicago: University of Chicago Press.

Donaldson argues that major changes are necessary in the decision-making process as well as in the conduct of multinational corporations in order to exercise moral obligations and meet culture-specific needs of host countries.

One of the reasons why Kantian contractualism has been seen as an appealing alternative to utilitarianism is that it seems to be able to avoid utilitarianism's extreme demandingness, while retaining a fully impartial moral point of view. I argue that in the current state of the world, contractualist obligations to help those in need are not significantly less demanding than utilitarian obligations. I also argue that while a plausible version of utilitarianism would be considerably less demanding if the state of (...) the world were different, a central aspect of contractualism means that it would remain exceedingly demanding in any practically realizable state of the world. (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)

Contributors from several countries discuss the central moral issues arising in the emerging global order: the responsibilities of the strongest societies, moral priorities for the next decades, and the role of intellectuals in view of the huge gap between widely expressed moral ambitions and prevailing political and economic realities.