In a recent issue of the Journal of Business Ethics, Filipe M. Santos posits that social entrepreneurs maximize not on value capture, but on value creation, only satisficing on value capture to fuel operations, reinvesting in growth, whatever the specific combination of institutional means is deemed appropriate. No doubt the analytical framework of value creation and value capture casts new light on the phenomenon of social entrepreneurship, but we think Santos is asking too much by advocating a shift in focus (...) away from the organization. On the contrary, we maintain that by refocusing the theory on the organizational level and away from the system it is possible to understand that not all organizational solutions available to social entrepreneurs are able to create value and not all value capture strategies can serve a social goal. Indeed, there is only one form of organization that fulfills the criteria of maximizing on value creation, while satisficing on value capture and that is the social enterprise. (shrink)

Business Ethics, the Environment & Responsibility, Volume 31, Issue 1, Page 1-3, January 2022.

This research explores how stakeholder scholarship can evolve into a puzzle-solving tool, akin to more advanced scientific fields. Only a unified stakeholder management science can address issues like firms that, despite the looming threat of climate disaster, prioritize profits over environmental concerns. Such unification, however, depends on a computational turn of mind outlined herein. Stakeholder scholarship has failed to progress toward this end, because stakeholder theory has fallen short of shedding light on the inner workings of the firm in search (...) of the mechanisms that govern its relations with stakeholders, instead lingering over the outermost parts of the social phenomena where stakeholder macro dynamics are obvious. This lays open several hurdles that must be overcome for stakeholder scholarship to become a puzzle-solving tool at the service of the environment and society. Thus, a computational fix may be within reach in the next few decades if the following five steps, elaborated upon herein, guide the transition: 1) probe firm-level mechanisms, 2) focus on qualitative institutional data, 3) adopt computational language to reduce ambiguities, 4) develop algorithms for how activities discharge powers or capacities to fulfill functions, and 5) break with peer-review silos that have made stakeholder theory self-referential. (shrink)

Los interesantes aportes del Prof. Ramírez Gómez tratan sobre el papel que el mercado debe jugar en una sociedad democrática, y con este propósito sugiere que éste debería responder a las preferencias del gobierno y no a las preferencias individuales. Nuestra réplica amistosa plantea que este argumento debe ser ampliado para evitar interpretaciones que lo confundan con las fórmulas experimentadas por las economías de planificación total, que han mostrado su ineficiencia en la provisión de valores de uso pertinentes. En este (...) sentido, sostenemos que el mercado debe estar subordinado a las preferencias individuales facilitando la libertad de las personas en la elección de alternativas de inversión y consumo, hasta el punto en que tal ejercicio sólo pueda hacerse sobre el menoscabo de un razonable ejercicio de libertad por parte de las demás. (shrink)

Garrett W. Brown has argued that donor voting caucuses produce a deliberative deficit between donor and non-donor members in the Global Fund International Board. Although we agree with this assessment, in our research on low-transaction cost alternatives to cope with consistent deliberative conditions we have found that deliberation and interest-based preference maximisation are not necessarily mutually exclusive, as long as we manage to stop donor members from behaving like monopolists. To this end, we have to open up the Board from (...) its present state of non-transparency, so that new input can be obtained from new constituents. This will also soften the current principal-agent structure that links members to their donors, easing the transition to market-driven governance rules that provide for the replacement of Board members if they do not fulfil the new constituents' expectations. (shrink)